comment on this article

Back to the future

More governments around the world are now looking at the possibility of subsidising construction of semiconductor factories as the worldwide chip shortage continues to impact the auto and electronics industries.

Overly reliant on Taiwan there is now a growing consensus that the supply chain needs to be diversified and governments in the US, the European Union, India and Japan are seriously looking at the possibility of spending tens of billions of dollars on new chip fabrication plants.

At the corporate level, Intel has already announced plans to invest in new manufacturing facilities while TSMC and Samsung are looking at new factories in the US.

So, could we be seeing a government backed restructuring of the semiconductor industry? Perhaps, at the minimum we’re likely to see a shift away from the outsourcing of production to Korea and Taiwan.

Analysts are concerned, however, that if these investments do take place then we could end up with far too much capacity as each nation looks to secure its own critical industries such as communications and defence.

Neil Tyler

Comment on this article

This material is protected by MA Business copyright See Terms and Conditions. One-off usage is permitted but bulk copying is not. For multiple copies contact the sales team.

What you think about this article:

Add your comments


Your comments/feedback may be edited prior to publishing. Not all entries will be published.
Please view our Terms and Conditions before leaving a comment.

Related Articles

Worrying times

News that UK companies might be shut out of the Galileo programme raises ...

Software and security

Last month Embedded World once again demonstrated why it’s described as the ...

Close to the edge

“We are entering a new era where artificial intelligence systems are helping to ...

Getting real with VR

Professor Robert Stone has been involved in the world of virtual, augmented and ...