Nanya is planning a $ 10 billion memory chip plant
Taiwan’s leading memory chip maker, Nanya Technology, announced on Tuesday that it will build a $ 10 billion chip plant to alleviate a severe global semiconductor shortage and meet growing demand for 5G-related components.
The $ 300 billion (US $ 10.69 billion) facility will be located in New Taipei City in northern Taiwan and will be the company’s largest new plant in more than a decade. “The investment will take place over the next seven years and create at least 2,000 new jobs. Construction will begin by the end of 2021, the plant will be completed in 2023, and mass production will begin in 2024,” Wu Chia-Chau, president of the company, told reporters.
Nanya is the world’s fourth largest producer of dynamic random access memory (DRAM) behind Samsung, SK Hynix and Micron. DRAM chips are used everywhere from computers and smartphones to servers and networked cars. Taiwanese and global chip makers are rushing to expand production capacity to address the worsening global chip shortage, which ranges from automakers to consumer electronics manufacturers.
Last week, the smaller Taiwanese manufacturer Powerchip Semiconductor Manufacturing Co. has already begun construction of a $ 278 billion chip factory in Miaoli, Taiwan. The company’s first new plant in 15 years is scheduled to be operational by 2023. Taiwan Semiconductor Manufacturing Co., the world’s largest contracted chip manufacturer, has previously confirmed it will make a record $ 100 billion investment to expand advanced chip capacity over the next three years, including a $ 12 billion plant in Arizona. Intel has also announced that it will spend $ 20 billion to build two additional chip plants in the U.S.
Nanya’s planned facility will use the most advanced method available for memory and logic chips, known as 10-nanometer manufacturing technology, it said. the company said in a stock exchange announcement on Tuesday, writes Nikkei Asia
The chip shortage emphasizes the importance of semiconductor components, which serve as the heart and brain of almost all electronic devices. As a result, both the U.S. and the EU are strongly pushing for increased local chip production, and the White House held a virtual CEO summit on the issue on April 12th. The U.S. government is also planning a $ 50 billion fund to boost advanced chip manufacturing and R&D to help the U.S. regain its leadership in chip manufacturing.
China also hopes to increase its independence by strengthening chip manufacturing. The country supports local memory chip makers such as Yangtze Memory Technologies in Wuhan, which will one day challenge Samsung and Kioxia. But it also enjoys support from ChangXin Semiconductor Technologies in Heifei, Anhui, which is currently a small but very efficient competitor to Nanya Tech and Samsung, SK Hynix and Micron.
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