Global Automotive Chip "Big Four" Invest over $25 Billion in Production Expansion

According to the Taiwan Economic Daily on the 17th, companies such as Infineon, Renesas, Texas Instruments, and Rapidus have all launched factory construction plans. The industry estimates that the amount invested by these four companies in expansion exceeds $25 billion, which may reduce existing outsourcing orders from wafer foundries such as TSMC and UMC, and put pressure on the automotive microcontroller manufacturer Nuvoton.

In recent years, major car chip manufacturers have directly contacted wafer foundries to shorten delivery times. With IDM factories vigorously building their own production capacity, outsourcing orders are bound to be reduced, which affects the orders received by the "wafer duopoly".

Infineon announced on the 16th that its new factory construction project had been approved by the German Ministry of Economy and could start construction before the relevant review is completed by the EU Commission. The new plant will cost €5 billion and is Infineon's largest single investment case to date.

Texas Instruments also announced plans to invest $11 billion to build a second 12-inch factory next to its existing wafer plant. The new project is expected to begin in the second half of 2023 and start production as early as 2026.

Renesas is considering expanding chip production capacity outside Japan to reduce supply chain interruption risks for car manufacturers and other important customers. CEO Hidetoshi Shibata said in an interview with Bloomberg TV on the 16th, "It's always better to have many options, not just in Japan, but in various regions." Rapidus also announced on the same day that it is considering setting up a factory in Hokkaido.