Japan to bolster local chip industry
Japan is set to increase investment in the domestic production of semiconductors amid the global chip shortage which has significantly impacted the country’s vital industries, the Nikkei Asian Review reported. According to the report, Prime Minister Yoshihide Suga’s cabinet is expected to approve the new strategy as early as June. The plan foresees expanding support programs for semiconductor manufacturing technologies, expanding existing facilities and inviting leading American chip manufacturers to set up additional operations in Japan. Current estimates see the global automotive industry losing $110 billion in revenue this year due to the chip shortage.
Samsung to announce US chip plant investment this week
Samsung Electronics Co. will reveal later this week that it plans to build a chip production facility in the United States, Yonhap reported on Monday citing sources familiar with the matter. The company is expected to announce its plans on Friday at the meeting between South Korean President Moon Jae-in and US President Joe Biden. The report indicated that Samsung’s head of the chip business Kim Ki-nam, who will attend as part of South Korea’s business delegation, will confirm the plans after the meeting. The report comes after stories from earlier this year speculated that the South Korean tech giant wants to invest $17 billion in a new foundry chip factory in Texas, Arizona or New York. Last week, Samsung announced that it will increase its investments in logic chips by $30 billion to reach a total of $151 billion invested by 2030.
Chip shortages to cost carmakers 5% of 2021 sales
Semiconductor shortages across the globe will cost car manufacturers as much as 3.8 million units in lost output in 2021, equivalent to 5% of annual sales, according to the latest report published by Fitch Ratings on Tuesday. “The chip shortages are likely to last longer and their impact will be greater than anticipated by the market… Many automakers expect to face the hardest pressures in 2Q21, but shortages should gradually ease in 2H21 and 2022,” Fitch noted in its estimate. Car plants that have faced most issues related to chip shortages are mostly based in North America and Europe, with companies such as Stellantis, General Motors, Ford and Stellantis facing the greatest impact.