By 2024, the global industry of electronic components will invest more than 500 billion dollars. A sum mainly dedicated to the construction of new factories to meet the growing demand from the automotive, IT or artificial intelligence sectors. In three years, 84 new production sites will be set up around the world.
Nearly a hundred new manufacturing plants within five years
The SEMI association published on December 12, 2022, its quarterly report World Fab Forecast analyzing the current state of the global semiconductor industry. According to the study, the sector is expected to spend more than $500 billion building 84 factories by 2024. More than half of them are already under construction since 2021 or 2022.
For the year 2023, 33 new constructions will start, a record. This is 10 more than the number of constructions that started in 2022 and nearly double the number of projects launched in 2019 and 2020. War in Ukraine, rising interest rates, inflation pushing up the price of raw materials: while the situation for the technological giants remains relatively worrying, the leaders of the semiconductor market have chosen to invest massively.
Investments which are explained by requests made by the governments of countries well established in this industry according to Ajit Manocha, President and CEO of SEMI, ” Report Highlights Significant Impact of Government Incentives on Expanding Production Capacity and Strengthening Supply Chains “, he says. ” The latest SEMI World Fab Forecast update reflects the growing strategic importance of semiconductors to countries and a wide range of industries globally “, adds the leader of the organization.
Europe, United States, China, Japan: all are investing in semiconductors
Between 2021 and 2022, several countries have put in place plans to attract semiconductor players to the ground for the sake of sovereignty. First, the European Commission unveiled in February 2022, a map to 43 billion euros to double Europe’s market share, increasing it from 10 to 20%. Within the Europe Middle East Africa (EMEA) region, 17 factories will be built by 2024, a record in line with the will of the European Union.
Japan is expected to build 6 new factories by 2024. The country recently announced his will to regain its place of yesteryear in the semiconductor sector, with its own subsidy plan. In all, over the next ten years, almost 40 billion dollars will be invested by several Japanese players, including the State itself, for the proper functioning of its business.
In the USA, the Chips Act ratified by Joe Biden will bring $ 280 billion to companies to strengthen the country’s technological lead over China. Micron, Qualcomm and GlobalFoundries invested as soon as this law was ratified. 18 new factories should see the light of day in the coming years, including those of Intel, in Arizona and in Ohio. TSMC has also started the construction of a factory in the United States.
Its technological rival, China, has also taken steps to invest properly in this sector. Now that she can no longer access electronic components and the tools to craft them from the United States and its allies, the Middle Empire should only count than on himself. The country will build around twenty additional factories in the next three years, a record figure.
For its part, Taiwan, supported by the semiconductor leader, Taiwan Semiconductor Manufacturing Co (TSMC), will build 14 new production sites on its territory. For the Island, its dominant position in the sector is also an argument to guarantee its sovereignty against China. Industrial as well as government relies on its silicon shieldthe material with which semiconductors are made, to deter Beijing from trying to invade.
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$500 billion will be invested by semiconductor manufacturers by 2024
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