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That is why global investment in semiconductor manufacturing is increasing

by Afonso
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In this modern technology-dependent world, semiconductors or chips are needed to make all kinds of devices, including smartphones, computers, cars, washing machines. Investment in this sector has increased globally over the past few years.

According to the British media BBC, almost all companies were dependent on Asia for chips even a few years ago. Now companies from countries outside Asia are also increasing investment in the semiconductor sector.

In 2021, during the corona pandemic, a major crisis was created in the semiconductor supply chain. The entire world then becomes dependent on a small number of suppliers.

Chip-to-device companies were desperate to reduce their dependence on Asia, analysts said. Therefore, countries outside Asia started investing in the semiconductor sector on a large scale.

In 2022, America passed the law called ‘US Chips Act’. After that, the country announced an investment of 5,000 billion dollars in the production of computer chips at the domestic level. In this regard, the European Union has also announced the adoption of a project of 4 thousand 3 billion euros. Britain has said it will invest 1 billion pounds in the chip manufacturing sector.

It can be assumed from these data, these initiatives of government investment of different countries in the semiconductor sector are attracting big companies in the technology sector.

A Taiwanese semiconductor manufacturing company said it has decided to invest 1 billion euros in Dresden with ten European companies. In addition, more than five hundred companies in America have applied for funding from the Center for Security and Emerging Technologies, according to research analyst Hannah Dohmen of the organization.

But technologists say that making computer chips or semiconductors is not easy. As a result, Taiwan Semiconductor Manufacturing Company (TSMC) is in trouble even if it thinks about building an advanced chip manufacturing plant in America. Due to their lack of skilled workers, production has been hampered.

Some technologists say that the activity of chip production in Europe and America can cause two types of problems. That is, the same product will be manufactured and converted into waste.


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