TECHNOLOGY

How chip shortages can help US high-tech manufacturing


Manufacturers did not beat Semiconductor shortage around the world. Game consoles like PlayStation 5 still rareAutomakers deliver cars With missing features, and Apple may end up producing files 10 Million Less iPhones In 2021. For a few companies, these supply chain problems may have an unexpected upside.

Overseas manufacturing has lagged and continued demand for consumer electronics has turned into windfall for some US chip makers. Even less well-known US manufacturers with old or used equipment have seen an increase in sales of their old chips or microcontrollers. These parts are inexpensive to make but they are An important component of many devicesAnd as supply chain issues have affected large companies that focus on more advanced technologies, the demand for core chips has increased. The companies that make these microcontrollers are flocking to customers, and they are now in the process of spending to boost their overall manufacturing capacity.

A semiconductor supplier in Arizona, Microchip Technology, is investing in expensive new equipment and hiring more employees because its profits tripled in the last quarter, According to the New York Times. GlobalFoundries, a chip maker based in Malta, New York, announced in July that it would do so Build another chip factory nearby trying to double their production capabilities. And just last month, a North Carolina-based manufacturer announced Axis semiconductor And changed its name from Cree to Wolfspeed. The company is also in Construction of a new manufacturing facility in upstate New York. General Motors already has Subscribe As a strategic customer, another clear sign that the chip supply crisis is benefiting some US sellers and opening up access to new customers.

Taken together, these developments point to a trend that industry leaders hope will become a renaissance in the US chip industry. Last May, Texas Instruments began construction on $3.1 billion chip factory Near its headquarters in Dallas has completed plans other facility thus. Intel announced last March that it will spend more than $20 billion to build two new chip makers In Arizona, the company says it can create more than 3,000 jobs. TSMC, the world’s largest chip maker, headquartered in Taiwan, has already begun construction $12 billion factory in Arizona. Now, the leaders of the local economy They court other companies which is working with TSMC to start operations there as well.

“We just want to make sure that more of the manufacturing facilities that get built in the future, more of that are built here,” John Neuffer, CEO of the Semiconductor Industry Association, told Recode. “It’s about making sure, going forward, we have a better balanced supply chain.”

The US government wants to capitalize on this momentum. President Joe Biden is eager to enhance the resilience of the nation’s chip supply, which government officials believe is essential to national security. At the same time, politicians on both sides of the aisle are eager to boost high-tech manufacturing in the United States, which has declined over the past several decades after many companies chose to build new plants overseas.

It is unclear whether a new wave of chip manufacturing can help the United States expand its role as a global hub for high-tech manufacturing. Although the Biden administration Exertion To address chip shortages, chip makers in the United States and abroad have pointed out That without direct financial incentives, they will send their new manufacturing elsewhere in the future. Even Idaho-based Micron Technology, Another major semiconductor manufacturer For the remaining computer memory in the United States, he said the future of his domestic production Depends on financial incentives. The company plans to spend more than $150 billion on chip research and development over the next decade, but it made clear You will build new factories abroad If it does not receive appropriate support from the US government.

These companies want Congress to approve $52 billion in funding to boost incentives for domestic chip production and aid Companies buy more manufacturing equipment. These subsidies may be critical to preventing the US share of global chip manufacturing from declining even further. Currently, only 12 percent of the world’s chip production occurs in the United States, a sharp decline from 37 percent share in chip manufacturing that occurred in the United States in 1990. While Republican and Democratic leaders have said they are keen to support high-tech manufacturing, chip industry leaders say the government has not yet offered the same financial incentives as other countries, including China And Japan, which also enhances the production of chips.

Time is of the essence. Currently, companies are racing to build facilities around the world that will manufacture chips for future technologies, including 5G devices and electric vehicles. Once these billion-dollar facilities start production, they are unlikely to get moving.

This story was first published in the Recode newsletter. Register here So you don’t miss the next!



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button