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TOKYO -- U.S. tech titan Intel has announced plans to spend $20 billion by 2024 to build two new chipmaking facilities in Arizona, but even if it manages to fend off China's growing influence on the global supply chain, it still faces the might of South Korea's Samsung Electronics and Taiwan Semiconductor Manufacturing Co.
A research report by IC Insights on the industry published in March suggests that that Intel figure is nowhere near enough to take on these Asian giants. "Governments would need to spend at least $30 billion per year for a minimum of five years to have any reasonable chance of success," the report said, referring to the minimum expenditure needed by the U.S., China and the EU to develop chipmakers that are comparable to Samsung and TSMC in terms of production technology and capacity.
Yet, chipmakers other than Samsung and TSMC have remained cautious about capital investment due to soaring costs of building factories.
According to IC Insights, Samsung has remained the world's biggest spender since 2010. Intel is barely catching up with second-ranked TSMC. Together, Samsung and TSMC are expected to be responsible for 43% of the global total capital expenditure this year.
Samsung and TSMC have dominated the global chipmaking industry over the last two decades. The recent automotive chip crunch is one of the negative effects of an oligopoly. While Intel's big investment is prompted by U.S.-China rivalry, its strategy must also be to close the gap with the top two companies.
asia.nikkei.com
A research report by IC Insights on the industry published in March suggests that that Intel figure is nowhere near enough to take on these Asian giants. "Governments would need to spend at least $30 billion per year for a minimum of five years to have any reasonable chance of success," the report said, referring to the minimum expenditure needed by the U.S., China and the EU to develop chipmakers that are comparable to Samsung and TSMC in terms of production technology and capacity.
Yet, chipmakers other than Samsung and TSMC have remained cautious about capital investment due to soaring costs of building factories.
According to IC Insights, Samsung has remained the world's biggest spender since 2010. Intel is barely catching up with second-ranked TSMC. Together, Samsung and TSMC are expected to be responsible for 43% of the global total capital expenditure this year.
Samsung and TSMC have dominated the global chipmaking industry over the last two decades. The recent automotive chip crunch is one of the negative effects of an oligopoly. While Intel's big investment is prompted by U.S.-China rivalry, its strategy must also be to close the gap with the top two companies.
South Korea and Taiwan elbow out China in chip investment
Samsung and TSMC seen responsible for 43% of semiconductor capital spending
asia.nikkei.com
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