Small things are welcomed by the whole world: the US invests more than 52 billion USD, the EU is determined not to stay out

Europe joins the race to produce semiconductors

Reuters news agency (UK) recently reported that US chip maker Intel is close to reaching an agreement with Italy to build an advanced factory in the country to produce semiconductors. The investment is part of a larger plan to increase chip production in the EU, to reduce dependence on Asia.

The deal for the semiconductor assembly and packaging plant will initially be worth $5 billion. The deal is expected to be reached by the end of August, Reuters added.

The investment in Italy is part of an expansion plan by Intel, the world’s largest semiconductor chipmaker by revenue, with $88 billion in capacity building across Europe, to cut costs. depends on chip imports from Asia, especially in light of the current tension in the Taiwan Strait.

The world’s largest semiconductor manufacturing plant is Taiwan Semiconductor Manufacturing Company (TSMC), which produces more than 90% of the most advanced semiconductors used in global industry.

The global chip supply crisis caused by the Covid-19 pandemic has limited the output of Europe’s strategic automotive industry. Semiconductors are also used in computers, home appliances, and many other items.

Earlier, Reuters reported that Rome was ready to finance up to 40% of Intel’s total investment in Italy, which is expected to grow over time from the initial $5 billion.

The European Union (EU) wants to develop advanced semiconductor facilities on its territory. The European Commission has made policy-driven investments totaling more than 43 billion euros under the Chip Act by 2030.

The chip manufacturing sector is becoming active. Photo: Reuters

President Biden signs chip bill to promote competition

CNBC News (USA) reported that President Joe Biden is about to sign into law a bipartisan bill worth tens of billions of dollars on semiconductor manufacturing, with the aim of enhancing the competitiveness of the US. America with China and other foreign adversaries.

The bill marks a victory for President Biden, who has tried to push Congress to pass the law as a matter of necessity for the US economy and national security.

The bill, called the Science and Chip Act, is worth more than $52 billion, providing aid to American companies that make computer chips, as well as billions of dollars in tax credits to encourage investment in chip manufacturing. . It also provides tens of billions of dollars to fund scientific research and development, and to spur innovation and the development of other American technologies.

The House and Senate passed the bill last week with nearly unanimous support of Democrats, while a third of Republican senators supported the bill.

Advocates say it is important for the United States to ramp up production of semiconductors, which are increasingly important components in a wide range of products including consumer electronics, automobiles, health care devices and more. health and weapon system.

President Biden once pointed out that the chip shortage is the cause of the current high inflation in the US. The lack of chips to make new cars has been linked to skyrocketing used car prices, which is pushing inflation higher.

Chips are in short supply due to the Covid-19 pandemic. Factory shutdowns hampered chip production in Asia while consumer demand for cars and home electronics surged during that time. The US share of global chip manufacturing has also plummeted in recent decades, while China and other countries have invested heavily in the industry.

The US produces very few of the most advanced semiconductors, most of which are made in Taiwan.

Taiwan: Dominating the world’s semiconductor production

According to The Conversation (Australia), the position of the island of Taiwan in the world in terms of semiconductor production is similar to that of Saudi Arabia in OPEC.

TSMC, the world’s largest semiconductor manufacturer with headquarters in the island of Taiwan, holds a 53% share of the global semiconductor manufacturing market. Other manufacturers based in the island of Taiwan account for an additional 10% of the market.

Notably, according to the Biden administration’s 100-day Supply Chain Assessment Report, “the US relies heavily on a single company – TSMC – to produce its leading cutting-edge chips.”

The US has been trying to attract TSMC to the US to increase domestic chip production capacity. In 2021, TSMC purchased a site in Arizona to build a manufacturing facility in the US. It is expected to be completed in 2024.