(Adds detail on STMicroelectronics' plant in France)
June 10 (Reuters) - Chipmakers across the globe are pouring billions of dollars into new plants, encouraged by the rising use of semiconductors in everyday devices and generous subsidies from the United States and the EU 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 provide more than $52 billion in subsidies to the American semiconductor industry.
The Act deters companies using U.S. funds from undertaking any big expansion 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 In 2022, 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 TSMC said in December 2022 it plans to invest $40 billion in its chip
Semiconductor plant in Arizona. The plant is scheduled to be operational in 2024.
Manufacturing In April this year, the company agreed to expand its planned
Company Ltd investment by $25 billion to $65 billion and add a third Arizona fab
(TSMC) by 2030.
Wolfspeed Inc In September 2022, 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 In October 2022, 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 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. The company will also
expand existing operations there and in Burlington, Vermont,
according to a preliminary agreement with the U.S. Commerce
Department in February this year.
Texas Instruments 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 In 2021, Samsung said it would invest in a $17 billion chip plant in
Electronics Co Ltd Taylor, Texas to make advanced chips for mobile, 5G, high-performance
computing and artificial intelligence. The chip plant would cost
Samsung over $25 billion, up more than $8 billion from initial
forecasts, Reuters exclusively reported last year.
SkyWater It announced plans in July 2022 to invest $1.8 billion for a chip
Technology research and production facility in Indiana, in partnership with the
state and Purdue University.
SK Hynix SK Hynix said in April it would invest around $3.87 billion to build
an advanced packaging plant, and research and development facility
for AI products in Indiana.
EUROPE
Company Investment
Infineon Infineon won approval to begin work on a 5 billion euro ($5.42
billion)semiconductor plant in the German city of Dresden, it said on
February 2023. Production is due to start in 2026.
Intel Intel will spend more than 30 billion euros to develop two plants in
Magdeburg, the German city it picked in March 2022 as a key part of its
$88 billion investment drive across Europe.
The U.S. chipmaker will get 10 billion euros in subsidies from
Germany, a source told Reuters.
STMicroelectro The European Commission approved Italian state aid for the Franco-Italian
nics company in May to build a 5 billion euro ($5.37 billion) chip plant in
Sicily which is planned to begin producing chips in 2026 and to be
operating at full capacity in 2033.
In April 2023 it was announced that the company secured EU approval
to build a chip factory in Crolles, France in partnership with
GlobalFoundries with French state aid and the new facility is
targeted to reach full capacity by 2028.
Taiwan In May this year, TSMC said it planned to start construction of its first
Semiconductor European facility in Dresden, Germany, in the fourth quarter of 2024,
Manufacturing with production expected to begin in 2027.
Company Ltd
(TSMC)<2330.TW
>
Wolfspeed Inc The chipmaker will build a $3-billion electric vehicle chip plant and a
research and development centre in Germany, it said on February last
year.
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.
Silicon Box Singapore-based semiconductor firm Silicon Box will invest 3.2 billion
euros in a new plant in northern Italy under a government-backed deal,
the Italian industry ministry said in March this year.
ASIA
Company Investment
Taiwan TSMC said in February that its majority-owned unit Japan Advanced
Semiconductor Semiconductor Manufacturing in Kumamoto would build a second fabrication
Manufacturing plant, bringing total investment in its Japan venture to more than $20
Company Ltd billion with the support of the Tokyo government.
(TSMC) The company is looking at building advanced packaging capacity in
Japan, according to a Reuters report in March, citing two sources
familiar with the matter.
Samsung Samsung said in March last year it will invest around 300 trillion won
Electronics Co ($218.49 billion) by 2042 to develop what the government called the
Ltd world's largest chip-making base, in line with efforts to enhance South
Korea's chip industry.
Micron Micron said it would invest $603 million over the next few years in its
Technology chip packaging facility in China's Xian city.
STMicroelectron STMicroelectronics and Sanan Optoelectronics plan to set up
ics a silicon carbide manufacturing joint venture in Chongqing, China.
Rapidus Japan's state-backed Rapidus broke ground on its plant in Japan's
northern city of Chitose, a manufacturing hub on the nation's northern
island of Hokkaido, in September last year.
VDL Dutch high tech firm VDL will build a new factory to make semiconductor
manufacturing components in Vietnam, it said in March.
($1 = 1,373.0800 won)
($1 = 0.9314 euros)
(Reporting by Antonis Pothitos in Gdansk, Tiyashi Datta, Aditya Soni, Akash Sriram, Harshita Mary Varghese and Arsheeya Bajwa in Bengaluru, Juby Babu in Mexico City; editing by Josephine Mason, Mark Potter, Krishna Chandra Eluri, Anil D'Silva, Vinay Dwivedi, Sriraj Kalluvila and David Evans)
((anna.pruchnicka@thomsonreuters.com; +48 58 769 65 14;))
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