More advanced chip factories are being built in China and Taiwan than anywhere else. It’s only good for them
According to SEMI, an international organization that looks after the interests of the electronics and integrated circuit industries, only six of the 64 new factories of semiconductors that are going to come into operation in Asia before 2029 will reside in Southeast Asia. The remaining 58 They will be located in China and Taiwan. These two countries have compelling reasons to strengthen its chip industry and develop its integrated circuit production capacity. It is essential for China to set up new plants equipped with cutting-edge photolithography equipment. And that is precisely what SMIC, Hua Hong Semiconductor and other Chinese chipmakers are doing. Currently this nation is limited by the difficulty of going beyond 7 nm without being able to use the extreme ultraviolet lithography (VVE) of ASML. Even so, Huali Microelectronics, the division of Hua Hong Semiconductor specialized in manufacturing chips for third parties, is preparing to start the production of 7nm integrated circuits at its Shanghai plant. Taiwan also needs to expand its semiconductor industry, although its motives are very different from China’s. The two largest Taiwanese integrated circuit manufacturers, TSMC and UMCthey need to develop more cutting-edge plants in order to satisfy the growing needs of their customers. TSMC’s 2 and 3 nm nodes in particular cannot cope, so it is essential for this company to expand its production capacity in the midst of the boom in data centers for data applications. artificial intelligence (AI). SEMI is concerned about the vulnerabilities of the chip industry Ajit Manocha, the executive director of SEMI, assures that “we want to see more centers emerge in related countries. We want more plants to be established to reduce the risk derived from vulnerabilities.” What worries the spokesperson of this organization is that the geopolitical tensions maintained by the US, China and Taiwan end up threatening the integrated circuit factories that reside in these last two countries. TSMC’s in Taiwan are especially sensitive to a possible conflict with China due to the undoubted strategic importance that they have not only for Taiwan, but also for the US and its allies. Malaysia, Singapore, Vietnam and Thailand are candidates to host new cutting-edge chip plants Malaysia, Singapore, Vietnam and Thailand are strong candidates to host new cutting-edge chip manufacturing plants. In fact, Several centers already reside in Malaysia Intel’s advanced packaging and verification software. However, Manocha You are also concerned about other types of vulnerabilities. The most critical of all is the shortage of critical minerals, as well as bromine and helium, two fundamental gases in chip manufacturing processes. What is happening with helium in particular is very worrying. This gas is a byproduct of natural gas processing, and its price skyrocketed in March shortly after the war that the US, Israel and Iran have been fighting since then began because Qatar was forced to stop production of liquefied natural gas. In the current unstable scenario, SEMI argues that Southeast Asian countries should aim to build more semiconductor manufacturing plants over the next decade to help the sector diversify and reduce supply risks. Image | TSMC More information | Reuters In Xataka | The US’s problem in the AI and humanoid race is not China: it is all of Asia and it is greatly disadvantaged