16 Aug 2023 -

Nine governments set to fund new, localised chip fabs

semiconductor chip

Nine governments are striving to fund chip fab R&D to reduce reliance on imported chips amid an emerging cold war between China and the U.S, reports EETimes.

The governments of China, the European Union, India, Japan, Malaysia, Singapore, South Korea, the United Kingdom, and the United States are all investing in new chip fabs or supporting the expansion of existing fabs.

The EU is pumping $47 billion into supporting the European Chips Act, which is also expected to attract $16 billion in private investment. The Chips Act and IPCEI on Microelectronics and Communications Technologies are to address semiconductor shortages and strengthen Europe’s technological leadership. The Chips Act’s goal is to double the EU’s share of the global chips market by 2030, from 10% to 20%.

The U.S. is also investing heavily in chip manufacturing. The CHIPS for America Act, which was signed into law in June 2022, provides $52 billion in funding for chip manufacturing and research. The law is expected to create or maintain over 200,000 jobs in the U.S. chip industry.

Last year Reuters reported that China is believed to be offering $143 billion in chip-industry subsidies however, earlier this year Bloomberg reported the plan is on hold.

India is also making a big push to become a major player in the global semiconductor market. The Indian government has set a goal of becoming a $1 trillion semiconductor market by 2030. The government has already announced plans to invest $10 billion in chip manufacturing and research.

The other governments mentioned in the article are also investing in chip manufacturing, albeit to a lesser extent. Malaysia, Singapore, South Korea and the United Kingdom have all announced plans to invest billions of dollars in new chip fabs. Japan is also investing in chip manufacturing, but the government has not yet announced a specific amount.

The investment in new chip fabs is a sign that governments around the world are concerned about the growing reliance on imported chips. The global chip shortage has highlighted the vulnerability of supply chains, and governments are taking steps to reduce their reliance on foreign suppliers.

The investment in new chip fabs is also a sign of the growing importance of semiconductors to the global economy. Semiconductors are used in everything from smartphones to cars to medical devices. The demand for semiconductors is only going to grow in the years to come, and governments are taking steps to ensure that they have a secure supply of these critical components.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

For more help with looking at supply chain options, contact Astute Electronics

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