How Investments in Manufacturing will Benefit the Semiconductor Ecosystem

By Syed Alam, Accenture
EETimes (April 13, 2022)

2022 has seen a steady stream of large–scale investments from some of the world’s largest chip manufacturers. At a time where the chip shortage finally seems to ease up, these investments will greatly benefit the global semiconductor value chain, helping to further alleviate the shortage, generate new jobs, create increased demand for fab equipment, and drive innovations in chip design.

Let’s look at some recent investments:

• Intel announced in March that Germany would be the site for a huge new chipmaking complex, giving the first details of a $88 billion investment drive across Europe. Intel is spreading its investment in Europe around half a dozen countries, including boosting its existing factory in Ireland, setting up a design and research facility in France, and a packaging and assembly site in Italy.
• Earlier this year, President Biden announced Intel’s plans to invest $100 billion in U.S. manufacturing as part of his State of the Union Address. The investment is a 500% increase from Intel’s original $20 billion plan to develop new semiconductor production facilities in Columbus, Ohio.
• Taiwan Semiconductor Manufacturing Company (TSMC), which supplies silicon for Apple, Qualcomm, and other tech giants, announced last January that it plans to spend as much as $44 billion to increase its manufacturing capacity in 2022. This is the most TSMC has ever earmarked, and it represents a 47% jump from 2021, when the company spent a then record of $30 billion.
• In November 2021, Samsung revealed its plans to spend $17 billion to build a semiconductor factory in Texas as part of a three–year strategy to increase its manufacturing capacity and alleviate the global chip shortage. This is the largest investment Samsung has ever made in the U.S.

These investments, totaling a staggering $249 billion, will bring to the entire semiconductor ecosystem some much needed help.

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