How a shortage of chips can contribute to high-tech manufacturing in the US

[ad_1]
Manufacturers have not passed shortage of semiconductors worldwide. Game consoles like PlayStation 5 they are still scarce, automakers are delivering cars with missing features, and Apple may end up producing 10 million fewer iPhones In 2021. For a few companies, however, these supply chain problems can have an unexpected rise.
Overseas manufacturing delays and constant demand for consumer electronics have become a huge success for some U.S. chip makers. Sales of chips or microcontrollers that are also produced by outdated or second-hand equipment or by unknown American second-hand manufacturers are also on the rise. These pieces are cheap to make but they are a critical component for many devices, and as supply chain problems have affected large companies that focus on more advanced technologies, the demand for basic chips has grown. Along with customers, the companies that make these microcontrollers are now spending to increase their overall manufacturing capacity.
An Arizona-based semiconductor supplier, Microchip Technology, is investing in expensive new equipment and is 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 plant near, hoping to double its production capabilities. And last month, it was announced by a North Carolina manufacturer to its semiconductor pivot and changed his name from Cree to Wolfspeed. The company is also there The process of building a new manufacturing facility in New York State. GM has already done it registered as a strategic customer, another clear sign that the chip supply restriction is benefiting some U.S. retailers and opening up access to new customers.
Taken together, these developments indicate a trend that industry leaders expect to see a resurgence in U.S. chip manufacturing. Last May, construction began on Texas Instruments A $ 3.1 billion chip plant Near Dallas headquarters and can finish plans another facility soon. Intel announced last March that it would spend more $ 20 billion to build two new chip manufactures Arizona plant, and the company says it could create more than 3,000 jobs. Construction of the world’s largest chip maker, Taiwan-based TSMC, has already begun construction $ 12 billion plant Arizona. Now, local economic leaders other companies are being convicted They also work with TSMC to start operations there.
“We want to make sure that more manufacturing facilities are being built here in the future,” said Recode John Neuffer, CEO of the Semiconductor Industry Association. “It’s about making sure we have a more balanced supply chain going forward.”
The U.S. government wants to take advantage of that momentum. President Joe Biden is eager to strengthen the resilience of the country’s chip supply, which is crucial to national security for government officials. At the same time, politicians on both sides of the aisle are eager to promote high-tech manufacturing in the U.S., which has plummeted in recent decades after many companies opted to build new plants abroad.
It is unclear whether a new wave of chip manufacturing will help the U.S. expand its role as a global high-tech manufacturing hub. Although it belongs to the Biden administration effort to address the shortage of chips, U.S. and foreign chip makers have signposted without direct financial incentives, they will relocate their new manufacturing in the future. Also Idaho-based Micron Technology the leading major manufacturer of semiconductors For the memory of computers left in the US, he said the future of his home production it is based on financial incentives. The company plans to spend more than $ 150 billion on chip research and development over the next decade, but has made it clear will build new factories abroad If it does not receive adequate support from the US government.
These companies want Congress to approve $ 52 billion to promote and support incentives for home chip production. companies buy more manufacturing equipment. These subsidies may be key to preventing the U.S. from further reducing its share of global chip manufacturing. Right now, only 12 percent of world chip production occurs in the U.S., a sharp decline a 37 per cent share In 1990, the chip was manufactured in the United States. While Republican and Democrat leaders have said they are keen to support high-tech manufacturing, chip industry leaders say the government has yet to provide the same financial incentives as other countries, among others. China and Japan, and these are also increasing chip production.
Time is of the essence. Right now, companies are racing around the world to build facilities that will manufacture chips for future technologies, including 5G devices and electric vehicles. When they start producing these billion-dollar facilities, they are unlikely to be picked up and moved.
This story was first published in the Recode newsletter. Register here not to miss the next one!
[ad_2]
Source link