More than 90% of advanced chips currently come from Taiwan.
Countries are looking to diversify their supply chains as Taiwan continues to account for more than 90 percent of the world’s advanced chip production.
According to a story that was published on Thursday by Reuters, the American chipmaker Intel is close to finalising a contract with Italy to develop an advanced plant in the nation for the production of semiconductors. The investment is a component of a bigger initiative to lessen the reliance on Asia by increasing chip manufacture in the European Union (EU).
As per Reuters, which cites its own sources for the information, the transaction for the semiconductor packaging and assembly operation will initially be worth $5 billion. According to the agency, it appears that a deal will most likely be achieved by the month’s end.
Intel, the world’s largest semiconductor chip manufacturer in terms of revenue, is planning to invest a total of $88 billion in building capacity across Europe. This is a part of Intel’s larger plan to reduce its reliance on chip imports from Asia, particularly in light of the current tensions between China and Taiwan. The investment in Italy is a part of this larger plan.
Taiwan Semiconductor Manufacturing Co. (TSMC), which is the largest semiconductor foundry in the world, is responsible for producing more than 90 percent of the most advanced semiconductors that are utilised in the industry on a global scale.
The global chip supply constraint that was precipitated by the coronavirus epidemic has resulted in a reduction in production in Europe’s critical automobile industry.
In addition to being utilised in computers and other electronic devices, semiconductors can also be found in a wide variety of other products.