Chipmakers' plans for factories in Europe, US and Asia
Updates with chipmakers' Asia and U.S. expansion plans
March 16 (Reuters) -Chipmakers across the globe are pouring billions of dollars in investment to set up new plants, encouraged by the rising use of semiconductors in everyday devices and generous subsidies from the U.S. and European Union aimed at keeping the West ahead of China in the race for cutting-edge technology.
The European Commission has earmarked 15 billion euros for public and private semiconductor projects by 2030, while U.S. President Joe Biden's administration passed the CHIPS Act last year to make over $52-billion worth of subsidies available for the American semiconductor industry.
The Act deters companies using U.S. funds from undertaking any big expansions of overseas semiconductor manufacturing facilities in "countries of concern" such as China for 10 years, with some exceptions.
India, Taiwan and South Korea have also offered incentives such as tax breaks to boost domestic chip production.
Below are some of the chipmakers' plans for factories in Europe, North America and Asia:
NORTH AMERICA
Company | Investment |
Intel INTC.O | Last year, Intel said it would invest up to $100 billion to build potentially the world's largest chip-making complex in Ohio. The company also broke ground on two new factories in Arizona in September 2021. |
Taiwan Semiconductor Manufacturing Company Ltd (TSMC)2330.TW | TSMC said in December it plans to invest $40 billion in its chip plant in Arizona. The plant is scheduled to be operational in 2024. |
Wolfspeed Inc WOLF.N | In September, Wolfspeed said it would build a new multi-billion dollar silicon carbide wafer factory in Chatham County, North Carolina to make chips that power things such as electric vehicles. Wafers are raw materials used for making chips. |
Micron Technology MU.O | In October, Micron said it planned to invest up to $100 billion over the next 20-plus years to build a computer chip factory complex in upstate New York. The company also announced a $15 billion factory in Boise, Idaho in September. |
GlobalFoundries GFS.O | GlobalFoundries in July 2021 said it will build a second factory near its in Malta, New York, headquarters, and spend $1 billion to boost output to address the global chip shortage. |
Texas Instruments TXN.O | The company has several wafer fab projects underway, including in Richardson and Sherman in Texas and in Lehi, Utah. It expects production at the Utah fab, which it bought from Micron for $900 million, to commence in 2026 |
Samsung Electronics Co Ltd 005930.KS | In 2021, Samsung said it would invest in a $17 billion chip plant in Taylor, Texas to make advanced chips for mobile, 5G, high-performance computing and artificial intelligence. |
SkyWater Technology SKYT.O | It announced plans in July last year to invest $1.8 billion for a chip research and production facility in Indiana, in partnership with the state and Purdue University. |
EUROPE
Company | Investment |
Infineon IFXGn.DE | Infineon won approval to begin work on a 5 billion euro semiconductor plant in the German city of Dresden, it said on Feb. 16. Production is due to start in 2026. |
Intel INTC.O | In March 2022, Intel picked the German city of Magdeburg as the site for its new mega chip manufacturing complex, a key part of its $88 billion investment drive across Europe. Business daily Handelsblatt reported on Feb. 8 that Intel wants 10 billion euros of government funding for that factory. It is also in talks with Italy for an advanced packaging and assembly plant, using new technologies to weave together full chips out of tiles. |
STMicroelectronics STM.BN | The Franco-Italian company said in October it plans to build a 730 million euro silicon carbide wafer plant in Italy. Building is due to be complete in 2026. It also announced plans in July to build a semiconductor factory in France in partnership with GlobalFoundries GFS.O. |
Taiwan Semiconductor Manufacturing Company Ltd (TSMC)2330.TW | According to a Financial Times report in December, TSMC is in advanced talks with suppliers about setting up its first European plant in the German city of Dresden. "We do not rule out any possibility but there is no concrete plan at this time," TSMC said in a statement |
Wolfspeed Inc WOLF.N | The chipmaker will build a $3-billion electric vehicle chip plant and a research and development centre in Germany, it said on Feb. 1. Production is planned to start in 2027 in the German state of Saarland, with Wolfspeed's Chief Executive Gregg Lowe telling Reuters the plant is expected to rank as the world's biggest production facility for chips made out of silicon carbide. |
ASIA
Company | Investment |
Intel INTC.O | Intel is considering a significant increase in its existing $1.5-billion investment in Vietnam to expand its chip testing and packaging plant in the Southeast Asian nation, Reuters reported in February. |
Taiwan Semiconductor Manufacturing Company Ltd (TSMC)2330.TW | TSMC plans to construct a second chip plant in Japan to manufacture 5 and 10 nanometre chips from the second half of the decade, a local newspaper reported in February. |
Samsung Electronics Co Ltd 005930.KS | Samsung said on March 15 it will invest around 300 trillion won ($230 billion) by 2042 to develop what the government called the world's largest chip-making base, in line with efforts to enhance South Korea's chip industry. |
Foxconn 2317.TW | Foxconn and Indian oil-to-metals conglomerate Vedanta signed a pact in September with India's Gujarat to invest $19.5 billion in the western state to set up semiconductor and display production plants. |
Reporting by Antonis Pothitos in Gdansk, Tiyashi Datta, Chavi Mehta and Aditya Soni in Bengaluru; editing by Josephine Mason, Mark Potter and Krishna Chandra Eluri
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