It is understood that Vietnam already has Intel’s largest semiconductor packaging and testing factory in the world and is currently formulating a strategy to attract more semiconductor investment, including investment from foundries focused on manufacturing chips.

Vu Tu Thanh, head of the U.S.-ASEAN Business Council’s Vietnam office, revealed that meetings have been held with six U.S. chip companies in recent weeks, including with fab operators. However, the specific company name was disclosed because the negotiations are still in the preliminary stage.

A chip executive who declined to be named said talks with potential investors involved U.S. semiconductor foundries GlobalFoundries and Power Semiconductor Manufacturing Co.

It is worth mentioning that the US President visited Hanoi in September and a bilateral agreement was reached. The United States will provide US$2 million (currently about RMB 14.64 million) in seed funding to launch a comprehensive workforce development program in Vietnam to jointly develop practical teaching laboratories and training courses for semiconductor assembly, testing and packaging.

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Data show that semiconductor production fell 17.1% in February, the largest year-over-year decline since December 2008, when semiconductor production plunged 18.1%. Compared with the same period last year, semiconductor production in February decreased by 41.8%.

Sources from the Korea Statistics Office said that the global demand for memory chips has weakened since the second half of last year, and the production of system semiconductors has also declined recently.

South Korea’s chip industry is an important pillar of the country’s economy, accounting for 12% of total exports in February. However, the South Korean economy is facing greater difficulties due to the decline in global demand for chips, which already experienced negative growth last quarter.

To address this challenge, the South Korean government hopes the economy will recover in the second half of the year and continue to support semiconductor investment as a key driver of economic growth. Last Thursday, South Korea’s parliament passed a plan to promote the semiconductor industry, providing tax incentives for companies to stimulate investment.

However, South Korea’s chip industry also faces geopolitical risks and the threat of a potential economic downturn. As central banks tighten monetary policy to combat inflation, the recession could further hit demand. In addition, U.S. technology companies continue to lay off employees also reflects the reduction in investment enthusiasm.

On the other hand, Korea’s total industrial output fell by 8.1% year-on-year in February, beating market expectations. The cyclical leading index also declined 0.3% from the previous month.

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If alignment measurement is performed on a large number of measurement points in a semiconductor lithography machine, the measurement itself will be very time-consuming, thereby reducing the production efficiency of the semiconductor lithography machine. To this end, the semiconductor manufacturing field has introduced a wafer measuring machine to separate the alignment measurement function of the semiconductor lithography machine, so as to ensure the high precision and efficiency of production.

On February 21, Canon launched the “MS-001”, a wafer measuring machine for semiconductor manufacturing, that enables high-precision alignment measurement of wafers.

▲ MS-001

According to reports, the alignment oscilloscope equipped with “MS-001” is equipped with an area sensor, which can perform the multi-pixel measurements and reduce noise during measurement. In addition, “MS-001” can also measure various types of alignment marks.

By employing a newly developed oscilloscope light source for alignment, the new product offers a wavelength range 1.5 times larger than that measured in semiconductor lithography equipment, enabling alignment measurement at any wavelength desired by the user. Therefore, “MS-001” can achieve higher alignment measurement accuracy than measurements performed in semiconductor lithography equipment.

▲ Added alignment marks (schematic)

Canon said that with the application of new products, most of the alignment measurement can be completed before the wafer is transported to the semiconductor lithography equipment, reducing the workload of alignment measurement operations in the semiconductor lithography equipment, thereby improving semiconductor lithography equipment productivity.

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This agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and technologically advanced vehicles. Through this strategy, chips can be produced in larger quantities and are expected to deliver better quality and predictability, maximizing the creation of high-value content for end customers.

Doug Parks, executive vice president of global product development, procurement and supply chain at GM, said, “We expect our demand for semiconductors to more than double in the coming years as the car becomes a technology platform.”

GF is reportedly responding to the global demand for semiconductors through a series of long-term strategic agreements with existing and new customers.

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That will include seed funding for startups, help for existing companies to scale up and new incentives for private venture capital, Bloomberg said, citing officials familiar with the plan. Ministers will set up a semiconductor working group to coordinate public and private support to increase the manufacture of compound semiconductors in Britain over the next three years, they added.

Image source Pixabay

Asked about the report, a British government spokesman said they would not comment on speculation, stressing only that the country’s semiconductor strategy would be published in due course. The U.K. government said last month that it is exploring national initiatives to expand the domestic chip industry, including the possible creation of a new body as part of its plans to boost infrastructure.

The U.K. Department for Digital, Culture, Media and Sport (DCMS) said in a statement that the strategy aims to “unlock the full potential of the chip business” and support jobs, and will also seek to ensure a reliable supply of semiconductors.

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Construction of the new facility will begin in June 2024, with production scheduled to begin in the spring of 2025. The project will more than double Toshiba’s onboard power semiconductor production capacity at the Himeji plant compared to fiscal 2022.

Power devices are critical components used to manage and reduce power consumption and conserve energy in a variety of electronic equipment. Most importantly, with the electrification of automobiles and the automation of industrial equipment, the market demand for Toshiba’s key technology, low-voltage MOSFETs (Metal Oxide Semiconductor Field Effect Transistors), is expected to continue to grow more than all other products. Toshiba has decided to meet this growing demand by building new back-end production facilities.

Going forward, Toshiba will expand its power semiconductor business and improve competitiveness by providing high-efficiency, high-reliability products to meet rapidly growing demand and contribute to carbon neutrality.

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SEMI said that chip manufacturers such as Shanghai Advanced Semiconductor, BYD Semiconductor, China Resources Microelectronics, Fuji Electronics, Infineon Technologies, Nexperia and STMicroelectronics have announced plans to build new 8-inch fabs to meet the growing market. need.

The report pointed out that from 2021 to 2025, the production capacity of automotive and power semiconductor fabs will lead with a growth rate of 58%, followed by MEMS growth of 21%, foundry growth of 20%, and analog growth of 14%. .

In terms of regions, SEMI said that in 2025, the growth of 8-inch wafer production capacity in mainland China will reach 66%, leading the world. This was followed by Southeast Asia at 35%, the Americas and Taiwan at 11%, Japan at 10%, Europe and the Middle East at 8%, and South Korea at 2%. In terms of total production capacity, mainland China continues to hold the world’s highest production capacity and its production capacity ratio continues to increase, accounting for about 21% of the world’s total 8-inch wafer production capacity.

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The Indian government announced a $10 billion incentive program offering up to 50 percent of project costs to attract display and semiconductor makers to set up bases in India.

In addition, in April this year, news that India is in talks with chip makers Intel, Grofond (GlobalFoundries) and TSMC to establish their local semiconductor plants in India.

It is worth mentioning that Tower Semiconductor, an Israeli chipmaker previously acquired by Intel for $5.4 billion, is also in active discussions with the government to set up a manufacturing plant in India.

In February this year, Intel announced the acquisition of Israeli chipmaker Tower Semiconductor for $5.4 billion to gain more specialized production capabilities. This acquisition will strengthen Intel’s position in the global foundry industry.

Analysts believe that the acquisition is very reasonable, Tower is a mature process wafer foundry industry, and this area is expected to be in demand in the next few years.

Intel CEO Pat Gelsinger said Intel and Tower’s technologies are complementary and that the foundry market, currently at $100 billion, is expected to grow dramatically through 2030.

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Cloutier said Friday that the Mexican government is looking to help companies that are considering expanding their operations in Mexico, and the Mexican Finance Ministry is evaluating options. She added that more investment in Mexico would benefit the local auto manufacturing, electronics and aerospace industries.

Cloutier said in an interview, “We can create incentives for companies moving into Mexico to make more investments.” She said she is in contact with Mexico’s Ministry of Finance to discuss what measures can be taken to support innovative industries and thus promote employment. “We believe that these areas should receive some type of assistance.”

Cloutier did not elaborate on what incentives are being discussed.

Earlier this August, after the U.S. Congress approved a chip bill totaling about $52 billion, the Mexican Department of Commerce held a forum with U.S. investors to discuss the advantages of investing in Mexico. Mexico’s Ministry of Economy said in a statement after the meeting that Mexico could be a “key collaborator.

Cloutier listed Jalisco and Aguascalientes as potential investment areas, but also encouraged companies to move to the southern states where water resources are more plentiful. Drought has affected Mexico’s northern cities, including Monterrey, and Mexican President Lopez called on water-intensive companies to limit production.

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The U.S. Senate is expected to take a final vote in the next few days, and the House could vote as soon as later this week.

Biden and others view the bill from a security perspective, arguing that chips are critical to a variety of consumer products and military equipment and that ensuring U.S. production is essential.

U.S. Commerce Secretary Gina Raimondo (D-Calif.) sees the vote as a symbol of a bipartisan effort to address the problem of chip manufacturing in the United States, which ensures a strong U.S. economy and national security.

House Majority Leader Chuck Schumer (Chuck Schumer) said, “The pandemic clearly and unmistakably shows that the chip shortage is causing a crisis for the United States.”

The American Semiconductor Association sees the vote as a key step toward formal legislation that would strengthen U.S. chip production, spur innovation, benefit economic growth and job creation, and be good for national security.

Biden is attached to the chip bill, which has been in the works for more than a year and a version of which passed the Senate in June 2021 but got stuck in the House, to the frustration of some lawmakers who prioritized the issue of Chinese competition and global supply chains.

Critics such as Sen. Bernie Sanders (I-Vt.) see this bill as a blank check to high-margin chip companies.

On Monday Biden had an online meeting with executives from Lockheed Martin, Medtronic, Cummins and other companies and some labor leaders to discuss the chip bill.

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