Source: Global Semiconductor Watch Original author: Feng Yingxian

According to Bloomberg statistics, the large economies represented by the United States and the European Union have invested tens of billions of dollars in research and development and production of a generation of semiconductors, and this is just the first funds in place. At the same time, South Korea and Japan have also joined the chip "subsidy race." As a large amount of money continues to pour into semiconductors, the global chip battle will intensify.

South Korea: $19 billion to support chip industry

On May 23, South Korea announced a comprehensive semiconductor industry support plan of up to 26 trillion won (about 19 billion US dollars), including providing large-scale financing support, as well as expanding the construction of semiconductor parks and various infrastructure, research and development personnel training investment scale, involving enterprises including chip manufacturers, raw material suppliers and chip design companies.

The centerpiece of the plan is the establishment of a 17 trillion won (about $12.4 billion) financing support program by the KDB for infrastructure investment in the semiconductor industry. At the same time, South Korea will extend tax breaks for chip investment to ensure the smooth progress of semiconductor super cluster investment.

Semiconductor is an important source of economic growth in South Korea, as the United States and Europe vigorously subsidize the chip industry, South Korea actively respond to promote the development of the local chip industry.

In January this year, South Korea announced a plan to build the world's largest and best semiconductor super Cluster, proposing to invest 622 trillion won (about 454 billion U.S. dollars) by 2047 to build 16 factories, including research and development plants. By building a semiconductor super cluster in Pyeongtaek, Hwaseong, Yongin, Icheon, and Suwon in southern Gyeonggi Province, Korea, the semiconductor industry is expected to produce 7.7 million chips per month by 2030.

Europe: To attract €100 billion by 2030

Recently, an official of the European Commission revealed that the European Chip Act is expected to help the European semiconductor industry attract more than 100 billion euros (about $108 billion) by 2030.

The official also said that the European Commission plans to complete a review of funding programs for four advanced semiconductor pilot lines by September, and is planning another pilot line for silicon photonics chips of an unspecified size.

The European Chip Act, which came into force in September 2023, aims to increase the EU's share of the global semiconductor market from 10% today to at least 20% by 2030. The bill promises to mobilize 43 billion euros (about $46.4 billion) in subsidy funds, of which 11 billion euros (about $11.8 billion) will be used for research and development of advanced process chip technology.

Two of Europe's largest chip projects are located in Germany, which plans to spend $20 billion in subsidies to boost chip production, with about 75 percent of the funds going to Intel and TSMC, according to the industry.

Intel plans to spend more than 30 billion euros ($33 billion) on a wafer fab in Magdeburg, Germany, and expects to receive nearly $11 billion in government subsidies. TSMC plans to build its first European plant in Germany, which will also receive government subsidies. Recent media reports have reported that the plant construction operation is on schedule, and construction will begin in the fourth quarter of 2024.

Japan: Has raised about $25.3 billion for the chip sector

In order to enhance the production capacity of semiconductor industry research and development, Japan has also provided a large number of subsidies in the semiconductor field, including attracting foreign investment to build factories and strengthening local cutting-edge process research and development and production.

According to media reports, since the formulation of the "Semiconductor and Digital Industry Strategy" in June 2021, the Japanese Ministry of Economy, Trade and Industry has raised about $25.3 billion for its chip industry, involving manufacturers including TSMC and Rapidus.

In February this year, TSMC Bear plant officially opened, which is TSMC's first factory in Japan (Fab23), the future total production capacity will reach 40~50Kwpm scale, its process will be mainly 22/28nm, and a small amount of 12/16nm, for the follow-up Kumamoto plant II main process preparation.

In April, Japan approved subsidies of up to $3.9 billion for Rapidus, the country's homegrown semiconductor manufacturing company, which plans to mass-produce 2-nanometer chips by 2027.

In addition to wafer foundry, Japan is also actively developing the memory industry. Earlier, Japan's Ministry of Economy, Trade and Industry announced 242.9 billion yen ($1.546 billion) in subsidies to Kaixia and Western Digital for the construction of two state-of-the-art NAND flash memory chip production plants in Mie and Iwate prefectural regions to meet the needs of artificial intelligence and big data centers. The joint venture plant will have 218 layers of 3D NAND chips.

Us: Allocated $29 billion to TSMC, Samsung, Intel and others

Introduced in August 2022, the Chip and Science Act provides $52.7 billion in funding for chip research, development, manufacturing, and workforce development in the United States, as well as a 25% investment tax credit for capital expenditures on manufacturing chips and related equipment.

According to recent media reports, since December 2023, the United States has allocated about $29 billion to provide subsidies to manufacturers including Samsung, TSMC, Intel, Micron and other manufacturers, while the above chip manufacturers have committed to invest about $300 billion in current and future chip manufacturing projects in the United States.

In April, Micron, Samsung and TSMC received U.S. funding grants, including $6.14 billion for Micron to build two new chip manufacturing facilities in upstate New York and Boise, Idaho, where it is headquartered. Samsung will establish a leading logic, R&D and advanced packaging facility in Tyler, Texas, and expand a production facility at a mature process node in Austin, Texas, with a $6.4 billion grant; TSMC has received $6.6 billion in grants to develop three cutting-edge fabs in Phoenix, Arizona.

Previously, the United States Microchip Technology company and Intel also received $162 million and $8.5 billion in funding, of which Intel's $8.5 billion is so far the United States chip Act to provide the most funding, Intel will use the funds to promote its commercial chip project progress in Arizona, New Mexico, Ohio and Oregon.