Taiwanese semiconductor company TSMC has announced plans to build a new chip fabrication plant (fab) in Arizona, United States. The company is the world’s largest contract chipmaker and supplies chips to tech giants such as Apple, Huawei, and Qualcomm. The new fab will use TSMC’s 5nm technology, which is a smaller and more advanced process than the 7nm technology currently used in its Arizona fab. The new fab is expected to begin operations in 2024 and will create over 1,600 jobs.
In addition to TSMC’s new fab in Arizona, the company is also planning a major expansion of its US fabs, with a new 3nm fab in Arizona and an upgrade to its 5nm fab in Washington state. The cost of the expansion is estimated to be around $40 billion. TSMC is also in talks to build its first chip plant in Europe, potentially in Germany.
STMicroelectronics and GlobalFoundries are teaming up to build a semiconductor manufacturing factory in France, a multibillion-euro project that will receive significant government support as part of Europe’s effort to boost its independence in critical technologies. The joint investment from the Switzerland and US-based companies would be worth €5.7bn and it is the second foundry to benefit from the EU’s €43bn plan to subsidize production in the bloc. The new fab aims to be at full capacity by 2026 and will create 1,000 jobs in south-eastern France near Grenoble with 18nm process.
Bosch, a German multinational company, has announced plans to build a 300mm chip plant in Dresden, Germany. The plant is expected to begin operations in 2024 and will produce microelectromechanical systems (MEMS) sensors. The project is part of a wider trend of semiconductor companies building new fabs or expanding existing ones, as demand for chips continues to increase due to the growth of technologies such as 5G, artificial intelligence, and the internet of things. This trend is leading to a global chip shortage, as companies struggle to keep up with demand. The shortage is affecting a range of industries, including automotive, consumer electronics, and healthcare. A new European funding program, IPCEI 2, is in progress. Within the framework of IPCEI 2, Bosch plans to invest €3B in semiconductor technology and systems by 2026.
Infineon, a German semiconductor company, is planning to build a new chip fab in Dresden. The company is planning to continue expanding its 300mm manufacturing capacity to enable the expected acceleration in growth of analog/mixed-signal and power semiconductors. The total investment for the project is expected to be €5 billion and it is expected to be the largest single investment in Infineon’s history. The new fab is expected to create up to 1,000 new highly qualified jobs and could be ready to start production in autumn 2026.
The trend of expansion and new construction in the semiconductor industry is being driven by the increasing demand for chips due to the growth of technologies such as 5G, artificial intelligence, and the internet of things. This demand is leading to a global chip shortage, as companies struggle to keep up with demand. The shortage is affecting a range of industries, including automotive, consumer electronics, and healthcare. It is causing difficulties for companies and governments around the world and leading to higher prices for consumers. It remains to be seen how the new fabs and expansions will impact the global chip shortage and if they will be able to meet the growing demand for chips.
