Semiconductors are vital to the modern economy and provide motivation for all from video games and cars to supercomputers and weapon systems.The Biden government is investing at $ 39 billion to help companies build more factories in the United States and bring more supply chains back to China.
But even after the completion of the US factories, chip manufacturing will still be obviously global.
An international journey of a chip for electric vehicles by US semiconductor manufacturer ONSEMI shows how difficult it is to decur with the East Asia and other dominant chip markets.
The steps to manufacture this special semiconductor (referred to as silicon carbide chip) were carried out in a factory in New Hampshire.The chip is eventually installed in cars driving in the United States and other places.But during this period, the process will depend on the raw materials, machinery and intellectual property rights of dozens of foreign suppliers and factories.
Starting from ONSEMI's factory in New Hampshire, it uses dark black silicon and carbon powder from Norway, Germany and Taiwan.Add powder to graphite and gas from the United States, Germany and Japan, and then heated to the temperature near the sun, generating a crystal, which will form a trunk of millions of chips.
This kind of crystal that is almost the same as diamonds was sent to a factory in the Czech Republic, using special machines from the United States, Germany, Italy, and Japan into thin slices.
These wafers were transported to a super -net factory in South Korea, where the mechanized barrel transported wafers to complex machines from the Netherlands, the United States and Japan.These machines use chemicals, gases and complex light patterns to create only a few atomic channels for electrons to pass through the information.
The wafer was then cut into a small chip, and then it was packaged and tested to factories in China, Malaysia and Vietnam.The chip was then transported to the global distribution center in China and Singapore.
These chips were sent to Modern, BMW, and other automakers in Asia and Europe, which put them in the power system of electric vehicles.Other chips are sold to Canadian, China and the United States, auto parts suppliers.
The computer chip was invented in the United States, but by the end of the 1960s, as the company seemed to save costs, some of the supply chains began to transfer to overseas.With the help of generous subsidies, Asian companies have finally begun to create cheaper and advanced chips than chips made in the West.
According to industry data, the share of the United States in world chip manufacturing has dropped from 37% in 1990 to 12% today.
The United States is trying to regain more chip production to make its supply chain more flexible and avoid the expensive and expensive semiconductor shortage that causes the economy during the great period.However, as other countries have continued to invest huge sums of money in the chip industry, the investment in the United States -although the scale is large, it can only play a role in changing the global pattern.
A study by Boston Consulting Group and the Semiconductor Industry Association estimated that by 2030, the injection of $ 50 billion will increase the share of the US manufacturing to 13% or 14%, thereby helping the United States to keep at least part of the share around the world.Studies stated that if there is no funding, the US share will drop to 10%.
For chips, including chips that help to promote artificial intelligence prosperity, US officials now say that new investment will make the country's expected to produce logical chips that account for about 20%of the world's global.
Moody's Analysis Company stated in a recent report that in the foreseeable future, chip and electronic product production may be concentrated in Asia.CHANCE Finley, Vice President of ONSEMI Global Supply Chain, said that technology companies are facing huge competitive pressures that reduce costs while innovation, which means they are forced to cooperate with Asia's skilled manufacturers.
He said that the construction cost of chip manufacturing facilities is incredible, ranging from $ 5 billion to $ 20 billion, which is higher than a nuclear power plant, which prompts domestic chip manufacturers to outsourcing manufacturing to foreign factories instead of building itself.The chip is small and light, which makes them easily move around the world.
ONSEMI is seeking new investment in the chip industry to help its development. At the same time, it also considers investing 2 billion US dollars in the United States, the Republic of the Czech Republic and South Korea for expansion.
Many stages of the ONSEMI manufacturing process are completed internally.This is a bit unusual for chip companies, because they often outsourced some production stages.Other chip supply chains are different, but they are also international.Many factories are produced in Taiwan, China, and Taiwan has produced more than 60% of chips around the world and more than 90% of chips.
A study by the global semiconductor alliance and Essezzhe in 2020 found that chips and components may cross the international boundary 70 times or more before reaching the final consumer, driving more than 25,000 miles in the process.
Another study of Boston Consulting Group and the semiconductor industry association focuses on establishing a self -sufficient chip supply chain in the United States, and it is estimated that this will cost $ 1 trillion and greatly increase the price of chips and its manufactured products.
We will self -sufficient ideas to some extent are unrealistic and say Bindiya Vakil, an executive officer of the supply chain map for semiconductors and other industries.Whether we like or not, we are part of the global supply chain.