Semicon Investments Surge

Demand for chips will undoubtedly accelerate in the future. But how to guarantee risk-free supply? And what does that mean for the strategy of individual semiconductor companies?

The critical role of chips in electronics, cars, phones, data centers, etc. is for many governments a concern, as a lot of the semiconductor production capacity is concentrated in China, Taiwan, Japan and Korea. And it is not only about the well-known wafer fabs but also about all these other thousands of (supplier) companies, in the 8 steps process of production chips.

Reducing related geopolitical risks and the drive to have an own semicon cluster have forced governments in the US, Europe, Japan and India to set up huge investment incentive schemes. Two well-known schemes are the US Chips Act and the EU Chips Act.

Companies in the semicon industry who want to continue servicing their customers have to set up investments in other parts of the world. A good example is the world’s leading semicon company Taiwanese TSMC who is building now wafer fabs in Phoenix (Arizona) and Dresden (Germany). About 100-200 Taiwanese suppliers have to follow their OEM and will locate production facilities in the US and Europe. 

BCI Global has made an overview of the growth of semicon demand and supply in all regions of the world, a comparison of the US Chips Act and the EU Chips Act and on analysis the most important challenges when locating a semicon (related) plant in North America and Europe. 

Interested? Send a request to receive that overview HERE.