https://safirsoft.com Chip makers are expected to spend $146 billion this year to increase capacity
The big picture: With a shortage of chips and an increasing demand for semiconductors, chip makers are spending more than ever to increase capacity. While much of this development is expected to continue in Asia, the United States is likely to gain a foothold in the advanced operations nodes.

Samsung announced last week that it is building a $17 billion Chip factory in Taylor, Texas, known as the "Star Project". “The new advanced Fab is making chips for 5G and machine learning applications, but it won't be operational until 2024.

Japan is seeking to revive its once-dominant silicon industry, and to that end, more than $5.2 billion in subsidies For companies interested in building Chip factories on site, including companies like TSMC, Micron, and Kioxia looking to build DRAM, NAND, and other advanced chips in the country. Will that help.

 https://safirsoft.com <b>Chip</b> <b>makers</b> are <b>expected</b> to <b>spend</b> <b>$146</b> <b>billion</b> <b>this</b> <b>year</b> to <b>increase</b> <b>capacity</b>

According to a report from The Wall Street Journal, Chip shortages and unsafe demand for For electronics, this has increased semiconductor costs in many regions, including the United States, as Chip makers continue to invest in capacity building in China, Taiwan and South Korea, but are also interested in how to keep pace. The United States or the European Union is a more resilient supply chain. Gartner estimates that Chip makers will invest $146 billion this year. That's 50 percent more than pre-pandemic capital expenditures, double what those companies invested in 2016, Gartner said 80 percent Of which is still spent building more production capacity in Asia. this proportion will remain similar until 2025, and indicates that the United States now accounts for about 14% of global investment in semiconductors.

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Analysts also estimate that only about six percent of the added production capacity for semiconductors will be in the United States over the next ten years. That's why the Chamber of Commerce is asking Congress to pass a bill that would provide $52 billion in direct subsidies to companies looking to build new Chip factories. However, the cost of setting up a Chip plant in the United States is much higher than that in Asia, which means that lawmakers must offer more incentives if they hope to attract Chip makers. China is investing billions of dollars. To promote the domestic semiconductor industry and its neighbors. South Korea plans to double its annual Chip exports to $200 billion by the end of this decade, and is offering billions in tax breaks and subsidies, along with promises to ensure adequate water supplies for Chip production.

The Biden administration has promised to increase US production capacity, citing national security concerns. Samsung, TSMC and Intel are building new plants in the US, but they won't run for years. Analysts expect the United States to have about 24 percent of global semiconductor production capacity by 2027, but most of it is likely to remain in Asia for the foreseeable future.



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