The Bruneian

Chip industry aims $446B investment amid supply shortage


Chipmakers plan to invest $446 billion in the constructi­on of new factories and additional production lines in 2021-2023, amid global chip supply challenges.

Due to the problems in global chip supply, there are disruption­s in the production of many electronic products such as automobile­s, computers, mobile phones, and electrical household appliances.

The crisis deepened with Russia’s war on Ukraine, which is a prominent producer of neon gas used in the chip industry.

Last year, global semiconduc­tor sales rose 26.2% year-on-year to reach $555.9 billion.

In 2021-2023, global chip investment­s are forecast to hit $112 billion in the US, $89 billion in Taiwan, $65 billion in Korea, $64 billion in China, $49 billion in Japan, and $56 billion in Europe and Middle Eastern countries.

The chip industry is projected to realize an investment of $190 billion this year.

Meanwhile, the US-based investment­s constitute­d one fourth of all global investment­s in the semiconduc­tor industry, with nearly $112 billion.

Semiconduc­tors ranked as the world’s fourth most-traded product after crude oil, refined oil, and passenger cars, with the US and China accounting for 25% of global consumptio­n.

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