Chip industry aims $446B investment amid supply shortage

By Bahattin Gonultas and Dilara Zengin

BERLIN/WASHINGTON (AA) - Chipmakers plan to invest $446 billion in the construction of new factories and additional production lines in 2021-2023, amid global chip supply challenges.

Due to the problems in global chip supply, there are disruptions in the production of many electronic products such as automobiles, computers, mobile phones and electrical household appliances.

The crisis deepened with Russia's war on Ukraine, which is a prominent producer of neon gas used in the chip industry.

Last year, global semiconductor sales rose 26.2% year-on-year to reach at $555.9 billion.

In 2021-2023, global chip investments are forecast to hit $112 billion in the US, $89 billion in Taiwan, $65 billion in Korea, $64 billion in China, $49 billion in Japan and $56 billion in Europe and Middle Eastern countries.

The chip industry is projected to realize an investment of $190 billion this year.

Meanwhile, the US-based investments constituted one fourth of all global investments in semiconductor industry, with nearly $112 billion.

Semiconductors ranked as the world’s fourth most-traded product after crude oil, refined oil and passenger cars, with the US and China accounted for 25% of global consumption.