25 billion dollars! Infineon has made its biggest single investment in Texas Instruments to build another wafer factory

Recently, Infineon, Renesas, Texas Instruments, Rapidus and other chip giants have started to build new wafer plants, the industry estimates that the four major companies in the production expansion of the amount of 25 billion dollars.

 

Infineon: 5 billion euros to build a factory in Germany, the largest single investment in history

 

On Feb. 16, Infineon said it had received approval to build a 5 billion euro ($5.35 billion) chip plant in Dresden, Germany, scheduled to start production in 2026. Infineon said it would be the largest single investment in its history and was expected to create about 1,000 jobs. The company is seeking 1 billion euros in public funds for the project.

 

Infineon also said the planned plant, which will produce power semiconductors and analog/mixed-signal components, would generate roughly the same annual revenue as the investment at full capacity.

 

The German economy ministry approved early projects for the plant, allowing Infineon to start construction until the European Commission completes checks on legal subsidies. German Economy Minister Robert Habeck welcomed the news as a sign that Germany is an attractive place for businesses to invest.

 

 

Renesas: Considering expanding chip production outside Japan

 

Renesas Electronics, a major maker of automotive chips, said on Feb. 16 that it was considering expanding chip production outside Japan to reduce the risk of future supply chain disruptions to automakers and other key customers.

 

Hideki Shibata, Renesas chief executive, said Japan faced challenges in building and operating new plants, including relatively high water and electricity costs, earthquakes and limited talent. It's always good to have a lot of options, not just in Japan, but everywhere.

 

Despite the volatile market conditions in the broader semiconductor industry, Renesas said earlier this month that inventories of automotive products remained below its target level. Mr. Shibata said at the time that the target for next season was to raise supply to slightly above expected demand.

 

Texas Instruments: Will build a second 12-inch wafer plant in Lee High, Utah

 

On Feb. 16, Texas Instruments plans to open a second 12-inch semiconductor wafer manufacturing facility in Lehi, Utah. The facility is next to Texas Instruments' existing 12-inch wafer manufacturing facility in the area, LFAB, and when completed, the two facilities will operate as a single wafer manufacturing facility. It's part of the company's $11 billion investment in Utah.

 

Construction of the new plant is expected to begin in the second half of 2023, with production starting as early as 2026. The facility will join Texas Instruments' existing 12-inch wafer manufacturing facility, which includes DMOS6 in Dallas, Texas; RFAB1 and RFAB2 in Richardson, Texas; And LFAB in Lehi, Utah. Texas Instruments, meanwhile, is building four 12-inch semiconductor wafers in Sherman, Texas.

 

Haviv Ilan, Executive Vice President and Chief Operating Officer, who will take over as President and Chief Executive Officer of TI, said, "This new facility is part of our long-term plan for 12-inch wafer capacity to meet customer demand for decades to come. With semiconductor demand for electronic products, especially industrial and automotive markets, expected to continue to grow in the future, now is the perfect time for us to further expand our own manufacturing capabilities."

 

 

Rapidus: Considering building a chip plant in Hokkaido, Japan

 

Japan's state-backed chip company Rapidus is considering building its first manufacturing plant in Hokkaido, Japan, TV Tokyo reported on Feb. 15.

 

Rapidus said a formal decision on the location of the new plant could come as early as the end of February, with Chitose, a city of about 100,000 people in southwestern Hokkaido, a possible location.

 

Rapidus, a joint venture between Toyota Motor, SONY and six other Japanese companies, has signed a partnership with IBM to develop the 2-nanometer chip project. Rapidus aims to mass-produce the chips in 2027.

 

The Japanese government has said it will invest 70 billion yen in Rapidus, and Rapidus revealed earlier this month that it would need about 7 trillion yen in funding, mostly government grants, to mass-produce 2nm chips by 2027.

 

Or affect OEM orders

 

In the global automotive chip market, Infineon is the industry leader, and Renesas and Teche are the third and fourth respectively. These three manufacturers adopt the IDM model and have analog IC, microcontrollers and other products. In the past, they were mostly produced by Taiwan Semiconductor, United Electric and other wafer factories.

 

In recent years, in order to shorten the delivery time, major automotive chip manufacturers direct contact with wafer foundries for cooperation, especially the next generation of automotive IC design is more complex and requires a higher level or special semiconductor manufacturing process support. As these IDM plants aggressively build their own capacity, the supply of automotive chips may be smoother in the future, but it will also reduce outsourcing orders, affecting Taiwan Semiconductor Manufacturing, United Electric and other orders.