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Silicon-based chips, known as semiconductors, are a vital component of many electronic devices and are responsible for operating smartphones, computers, planes, and automobiles. They can be credited for the 5G on your ultra-thin smartphone, how complex and risky surgeries are becoming safer, and the rise of autonomous vehicles.
In essence, they make modern-day life more convenient, more efficient, and a great deal more entertaining. So, when the world faced a global chip shortage in 2021, the impact was, unsurprisingly, huge.
What Caused the Semiconductor Shortage?
The COVID-19 pandemic exacerbated existing supply chain and production capacity issues within the semiconductor industry.
Automakers slashed semiconductor orders in the early months of 2020, which led to many suppliers cutting their output to pursue alternate production lines. Vendors were then unable to cater to the sudden rise in demand that came in the latter half of the year, not least because the semiconductor production process is pretty complex and lead times are long. These factors, combined with extensive and ongoing supply chain delays and disruption, have made it difficult for the industry to recover.
As of summer 2022, the lead times for most semiconductors were running at least 40 to 50 weeks, and many were in the 70+ range.
J.P. Morgan research suggests that more chips will become in the next few months, but players in the auto industry are doubtful that supply will meet demand any earlier than 2024.
Unsurprisingly, the global chip shortage has motivated many manufacturers to reshore their semiconductor operations. Reshoring, which describes the process of bringing production and manufacturing “back home,” is a way of regaining supply chain control, safeguarding against global disruptions, and improving efficiency and product quality.
This guide will provide the latest news on reshoring and onshoring in the semiconductor industry. The most recent updates will appear at the top of the article.
December 2022
TSMC Raises Arizona Chip Investment to $40 Billion
In December, TSMC announced it would raise its initial investment from $12 billion to $40 billion by opening a second facility in Arizona. The facility will produce more “technically advanced” chips. This investment is the largest ever for Arizona and one of the largest foreign investments in U.S. history.
November 2022
Edwards Vacuum Announces New York Factory
Edwards Vacuum will invest an estimated $319 million to establish a new production facility within the Western New York Science & Technology Advanced Manufacturing Park in Alabama, New York. The project will feature manufacturing, warehouse, and office space across 240,000 square feet. It is expected to create 600 jobs.
Absolics Inc. Announces Manufacturing Facility in Georgia
Absolics, Inc., an advanced package technologies and services provider, announces it will invest $600 million to establish a manufacturing facility for semiconductor materials in Covington, Georgia. The plant will create over 400 jobs, and Absolics will be the first to mass produce the glass substrate developed in collaboration with SKC and the Georgia Institute of Technology.
September 2022
The University of Arkansas Launches New Research Hub
The University of Arkansas will study semiconductor materials at a new research center, which has been funded by a $10 million federal grant. The grant has been awarded by the U.S. Department of Energy over four years to develop the first Energy Frontier Research Center in the state.
June 2022
GlobiTech Expands Operations in Texas
GlobiTech Incorporated announces details of its plan to establish a 300-millimeter silicon wafer factory in Sherman, Texas. The multi-billion dollar development is expected to create 1,500 jobs and will close a critical supply chain gap.
Purdue University’s College of Engineering Establishes First Semiconductor Chip Design Center
Purdue University’s College of Engineering has partnered with MediaTek, a global fabless chipmaker, to launch the first semiconductor chip design center in the Midwest on the school’s campus. The new design center will give students access to world-class chip design talent on campus.
May 2022
Applied Materials Opens Third Montana Plant
Applied Materials opens its third plant in Evergreen, Montana, in a bid to meet the growing demand for electronics. The 100,000-square-foot facility is housed in a long-vacant department store and will create 200 new jobs.
March 2022
Fujifilm Electronic Materials USA Expands Arizona Facility
Fujifilm Electronic Materials USA finishes an $88 million expansion of a factory in Mesa, Arizona. The 80,000-square-foot expansion will see a 30% increase in the company’s capacity and includes plans to add 120 jobs in the next two years.
Edwards Plans Arizona Plant
Edwards, a global producer of vacuum and abatement equipment for advanced manufacturing operations, announces its plans to establish a 200,000-square-foot manufacturing facility in Phoenix, Arizona. The plant will produce equipment needed to meet “new semiconductor fab requirements” and will create 200 new jobs.
January 2022
EMD Electronic Announces New Factory in Arizona
EMD Electronics announces a $28 million investment to establish a facility in Chandler, Arizona. The plant, which will produce equipment for its delivery systems and services division, will begin operations by the end of 2022 and employ more than 100 workers at full capacity.
Intel Builds $20 Billion Semiconductor Factory
Intel is building what it describes as the “largest silicon manufacturing location on the planet.”
The company plans to initially invest $20 billion in two plants over 1,000 acres, which will enable it to manufacture a variety of chip types as market needs change. To achieve its long-term goals, the company will need about 7,000 workers.
Intel to Build Two Chip Factories in Ohio
Intel announces it will invest $20 billion to build two semiconductor foundries just east of Columbus, Ohio. The project is expected to create approximately 3,000 company jobs and could eventually be home to eight semiconductor plants.
June 2021
MEMC Electronic Materials Expands U.S. Operations
MEMC Electronic Materials announces an $800 million agreement with a St. Louis manufacturer of silicon wafers for semiconductors. The deal includes a $210 million investment in its O’Fallon, Missouri, facility, which will create 75 jobs.
“MEMC’s expansion will strengthen the global semiconductor supply chain, promote American manufacturing, and support good-paying jobs right here in Missouri,” said Missouri Governor Mike Parson.
May 2021
Intel Upgrades New Mexico Factory
Intel announces it will invest $3.5 billion to upgrade equipment at its Rio Rancho, New Mexico, manufacturing campus. This will enable the company to produce advanced semiconductor packaging technologies. The project is expected to create 700 technology jobs.
November 2021
Texas Instruments Invests in New Semiconductor Plants
Texas Instruments (TI) announces it will invest $30 billion to build two semiconductor wafer factories in Sherman, Texas. These plants will directly support 3,000 jobs and could be followed by two additional factories as semiconductor demand in electronics develops.
Samsung Announces Semiconductor Plant in Texas
Samsung Electronics announces it will spend $17 billion to build a chip plant in Taylor, Texas. The plant will span nearly two square miles and be used to manufacture semiconductor products used in mobile technologies, 5G applications, high-performance computing, and artificial intelligence.
This marks Samsung’s largest-ever single investment in the U.S. and is expected to directly result in over 2,000 new, high-tech jobs.
September 2021
Intel Invest in Two New Chip Factories in Arizona
Intel announces investment in two chip factories in Chandler, Arizona. The factories will be the fifth and sixth on the company’s Ocotillo campus and will help the state’s position as a global leader in semiconductor manufacturing.
The newest factories will leverage the company’s advanced process technologies, such as Intel 20A featuring RibbonFET and PowerVia innovations.
Lam Research Opens Second Oregon Plant
Lam Research Corp., a Silicon Valley manufacturer of chip production equipment, announced plans to open a new factory in Sherwood, Oregon. The 45,000-square-foot plant will provide semiconductor producers with the essential tools and equipment needed to make chips used in advanced electronic devices and create about 300 new jobs.
September 2020
Nvidia Buys U.K.’s Arm Limited
In what becomes the largest-ever semiconductor deal, graphics chip maker Nvidia announces it will buy U.K.-based Arm Limited in a $40 billion deal.
Upon completion, Nvidia will manufacture chips for electrical devices, including those in autonomous vehicles, and make its chip technology available to other suppliers.
May 2020
TSMC Announces Arizona Factory
Electronics manufacturer TSMC announces plans to build a second U.S. manufacturing facility in Arizona. This $12 billion project will create more than 1,600 high-tech jobs and have a production capacity of 20,000 semiconductor wafers per month.
September 2019
Cree Announces $1 Billion New York Silicon Carbide Plant
Electronics manufacturer Cree announces it will invest $1 billion to establish the world’s largest silicon carbide fabrication facility in upstate New York. The plant will produce 200-millimeter wafers for power and radio frequency applications.
Image Credit: sdecoret / Shutterstock.com
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