Here's Why the World is Investing So Much in Semiconductors

Hannah Mullane, a BBC correspondent, recently visited Pragmatic Semiconductor, the UK's newest computer chip facility in Durham.
The large site is being turned into a sophisticated computer chip production hub.
Pragmatic Semiconductor has already developed one production line, commonly known as a fabrication line or fab line.
Enclosed within a spacious chamber, the manufacturing line is equipped with all the costly tools required to manufacture computer chips, and the air quality is constantly regulated to prevent any contamination while the manufacturing process is underway.
Pragmatic has the funds to create another such production line, and investment of £182 announced late this year will go into production lines 3 and 4.
The Cambridge-based firm will require a lot more funding to wrap up the eight production lines it has planned to install in the old pipe plant.
From phones and computers to cars and washing machines, practically every product with an on/off switch is dependent on the production of computer chips, also known as semiconductors.
During the pandemic, supply lines were disrupted, and geopolitical tensions arose in Asia, which manufactures 90% of the world's most advanced chips.
Most semiconductors are composed of silicon, but his company uses an alternate process.
Rather than sitting on a silicon wafer, Pragmatic's chips are built from a flexible thin sheet.
This approach develops chips that are less expensive and faster to manufacture than traditional silicon chips.
The most sophisticated silicon-based computer chips will still be required to run phones, computers, and other cutting-edge technology, even though flexible chips can be manufactured more quickly and at a lower cost.
A significant shortage of such chips in 2021, illustrated how reliant the global industry is on a few key suppliers.
90% of the most advanced semiconductors manufactured worldwide are produced by Taiwan Semiconductor Manufacturing Company.
To reduce that dependency, governments are investing enormous sums to develop more robust local semiconductor sectors.
In August 2022, the US government signed the US Chips Act, which pledged $52 billion to increase domestic computer chip production.
Analysts believe that large chip manufacturers are responding to such government incentives.
Following the US Chips Act, approximately 500 firms sought the US government for project financing, according to Hannah Dohmen, a research analyst at Georgetown's Centre for Security and Emerging Technology in Washington.
It all seems extremely promising, but establishing computer chip plants is not straightforward.
TSMC's plans to develop advanced semiconductors in Arizona have stalled, with the company blaming a dearth of experienced labour.


This Cyber News was published on www.cysecurity.news. Publication date: Sun, 14 Jan 2024 15:13:04 +0000


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