Investment Move to Overcome the Chip Crisis
Today, most of the chip production takes place in Asian countries, as is known by the whole world. Currently, 75% of chip production takes place in East Asia. Taiwan, South Korea, Japan, China, and the USA are the leading countries in chip production. Developed economies, on the other hand, have experienced that over-dependence on Asia on the chip can be dangerous during the pandemic. About half of global chip production and nearly all the advanced chips are made in Taiwan, which is part of China under the United Nations but has close political ties to the West.
90% of advanced chips are made in Taiwan. Taiwan-based TSMC is the world's largest chip manufacturer. The company has a market capitalization of $400 billion and annual revenue of $70 billion.
Taiwan-based TSMC, US-based Intel and Qualcomm companies take the lead in chip production. In addition, the ongoing trade tensions between the USA and China negatively affect the chip industry. Many US companies no longer buy chips from Chinese manufacturers. This puts the already clogged sector even more difficult.
The construction of 20 new chip factories in China, 18 in the USA, 17 in Europe and its immediate surroundings, 14 in Taiwan, 6 in Japan, 6 in Southeast Asian countries, and 3 in South Korea has started. It is stated that the cost of an entry-level chip manufacturing facility is $ 15 billion. Chip factories can be considered obsolete in about 5 years due to technological progress. Chip production is a challenging process and requires serious investments. Chip factories are among the investments with very high costs. After the establishment of these facilities, uninterrupted production is carried out.
After the chip crisis caused disruptions in many production lines, developed countries accelerated their chip investments. It is stated that the construction of 84 new chip facilities has started and will begin in the 2021-2023 period. This year alone, the construction of 28 new chip factories begins.
Source:
https://www.ensonhaber.com/otomobil/nissan-elektrikli-ariya-modelinin-uretimini-durdurdu
