Rebound Electronics Market Insights Q2 2024 - Flipbook - Page 9
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General Market Insight
Semiconductor Industry Market News
Americas Semiconductor Industry Surge: Major Investments and Strategic Alliances
President Biden has announced a significant $8.5 billion agreement with Intel to build semiconductor plants
across four states, backed by the CHIPS and Science Act, aiming to boost U.S. semiconductor production and
create 30,000 jobs. This move aligns with broader economic strategies to strengthen American manufacturing
and technology leadership.
Simultaneously, the U.S. and Mexico are collaborating to enhance the semiconductor supply chain, focusing on
resilience in sectors like automotive and healthcare. SK Hynix is also investing $4 billion in a new semiconductor
facility at Purdue Research Park, Indiana, underscoring U.S. innovation efforts.
Samsung is expanding its semiconductor investment in Texas to $44 billion, aiming to enter the AI
semiconductor market despite high production costs. In parallel, Micron is set to receive $6.1 billion in federal
grants to enhance its manufacturing capabilities in New York and Idaho, furthering U.S. self-reliance in
semiconductor production.
Amidst rising U.S.-China tensions, sanctions on Nvidia9s Chinese distributor Sitonholy are driving Chinese firms
to shift towards domestic alternatives like Huawei's AI chips. Arizona State University is leading breakthroughs in
advanced packaging technology for microchips, enhancing performance and securing the supply chain.
In Canada, IBM, in partnership with the federal and Quebec governments, is investing $187 million CAD to
expand semiconductor R&D and packaging capabilities, aiming to position Canada as a leader in the industry.
These collective efforts reflect a robust drive to bolster the semiconductor industry across the Americas,
addressing global supply chain vulnerabilities and fostering economic growth and technological competitiveness.
Europe's Semiconductor Landscape Sees Major Investments and Strategic Developments
The UK government has earmarked £16.6 million for semiconductor research focused on electric vehicles
(EVs) and clean energy. Led by Innovate UK, this investment aims to advance power electronics crucial for
EVs and manufacturing, demonstrating the UK's commitment to innovation and sustainable growth.
However, a report by the Centre for Emerging Technology and Security (CETaS) highlights gaps in the UK's
semiconductor strategy. It calls for stronger international partnerships, especially with South Korea, and the
creation of a National Semiconductor Institute to address infrastructure deficiencies and improve
competitiveness in AI hardware.
In Southern Europe, Portugal's semiconductor industry is booming with international investment and
innovation. Companies like Synopsys and PICadvanced benefit from the country's strategic location, skilled
workforce, and supportive policies. With $1.6 billion in new investments, Portugal is set to create thousands of
jobs and enhance its role in the global semiconductor market. Collaborations, such as those between
GlobalFoundries and Amkor, are strengthening the European semiconductor supply chain, particularly in the
automotive sector.
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