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How chip shortages can support high-tech manufacturing in the US

The manufacturers did not win shortage of semiconductor worldwide. Comforting games like PlayStation 5 still a minority, car manufacturers are offering cars needs, and Apple may be able to make Less than 10 million iPhones in 2021. For a few companies, however, these problems can have unintended consequences.

Delays in production abroad and the constant demand for consumer electronics have become a threat to chip manufacturers in the United States. Even well-known American manufacturers who have worn out or used equipment have seen a large number of commercially available chips, or microcontrollers, that they make. These parts are cheap to make but are an essential component for many tools, as well as the fact that supply problems affect large companies that focus on high-tech, the demand for start-up chips has grown. With customers, the companies that manufacture these microcontrollers now have more money to upgrade their entire production capacity.

One of Arizona’s semiconductor vendors, Microchip Technology, is selling more expensive new equipment and recruiting more workers because its profit doubled in the last quarter. according to the New York Times. GlobalFoundries, a chip maker in Malta, New York, announced in July that it would do so building another chip plant close to the goal of increasing its production capacity. And last month, the North Carolina manufacturer announced its movement in semiconductors and changed its name from Cree to Wolfspeed. The company also exists construction project in upstate New York. GM already has it he registered as a smart customer, another obvious sign that chip cuts are benefiting some U.S. retailers is opening up opportunities for new customers.

Taken together, these developments reflect the expectations of industry leaders for a change in the US chip. Last May, Texas Instruments began construction $ 3.1 billion chips near their headquarters in Dallas and could complete its plans other places soon. Intel announced last March that it would spend more than that $ 20 billion to build a two new chip industrial in Arizona, and the company says it can create more than 3,000 jobs. The world’s largest chipmaker manufacturer, TSMC from Taiwan, has already begun construction $ 12 billion factory in Arizona. Now, local financial leaders promoting other companies who work with the TSMC to start work there, too.

“We just want to make sure that more production equipment is built in the future, so that more will be built here,” John Neuffer, CEO of the Semiconductor Industry Association, told Recode. “I make sure that, going forward, we have a better way of delivering things.”

The US government wants to benefit from this. President Joe Biden is determined to strengthen the country’s chip, which government officials believe is crucial to national security. At the same time, politicians on both sides are keen to promote technological innovation in the US, which has declined over the past few decades with many companies opting to build new factories abroad.

It is unknown at this time what he will do after leaving the post. Even the rulers of Biden effort to address chip shortages, chip manufacturers in the US and abroad do so he signs that, without direct financial support, they will post their new production anywhere else in the future. Even at Idaho-based Micron Technology, it is the last major manufacturer of semiconductors for recalling the remaining computers in the US, he has said that the future of its domestic products depends on economic incentives. The company plans to spend more than $ 150 billion on chip research and development over the next decade, but has made it clear that. will build new plants abroad if it does not receive appropriate treatment from the US government.

The companies want Congress to approve a $ 52 billion grant to help build a chip and help out. companies buy a lot of manufacturing equipment. These resources may be crucial in preventing the US role in the global arms industry from being drastically reduced. Currently, only 12 percent of chip production worldwide is in the US, a significant decrease from 37 percent share of the chip production that took place in the US in 1990. Although Republican and Democratic leaders have said they are keen to support the development of high-tech weapons, chip industry leaders say the government has not yet provided economic stimulus to other countries, including. China and Japan, which also increases their chip production.

Time is of the essence. Meanwhile, companies are rushing to build facilities around the world that have developed future technology chips, including 5G devices and electric vehicles. Once the billion-dollar area begins to build, it is unlikely that they will take it and move.

The article was first published in the newspaper Recode. Sign in here so don’t miss the next one!

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