Global Chip Shortage Reshuffles Industry’s Balance of Power

The global shortage of computer chips has been widely documented, impeding sales of everything from cars to appliances, game consoles and medical devices, among other things. As a result, Taiwan’s giant TSMC has seen its revenue and influence increase, but scarcity has also bolstered the clout of less famous manufacturers, including Infineon, Microchip Technology, NXP, Onsemi, Semiconductors and STMicroelectronics, which supply a variety of chips for thousands of customers. Companies are using their newfound leverage to gain favorable terms, like long-term commitments or upfront payment as a means of helping to increase production. Continue reading Global Chip Shortage Reshuffles Industry’s Balance of Power

Countries Plan to Invest in New Chip Manufacturing Facilities

Due to a global semiconductor shortage, the United States, European Union countries and Japan are planning to spend billions of dollars to build chip fabrication plants (“fabs”). These countries also face the fact that more than two-thirds of the world’s chips are made in Taiwan. China is offering subsidies to its domestic chip industry, as industry-leaders Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics plan to build U.S.-based fabs, potentially aided by significant U.S. government subsidies. Continue reading Countries Plan to Invest in New Chip Manufacturing Facilities

Europe Plans to Create Smarter, Energy-Efficient Electronics

The European Union is looking to take on China’s tech dominance by approving up to $9.1 billion in public and private funding that would enable France, Germany, Italy and the United Kingdom to conduct research in microelectronics. The funding would help companies and research centers work together on developing advanced sensors and microchips, with an emphasis on smarter, more energy-efficient components. The decision coincides with the EU’s efforts to limit foreign investments and restrict business with Chinese tech companies such as Huawei. Continue reading Europe Plans to Create Smarter, Energy-Efficient Electronics