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Chip Companies Invest Billions Into Semiconductor Facilities To Curtail Global Demand

If you missed out on a Sony PlayStation 5 on boxing day don't sweat it, Ford lovers are still waiting for the 2022 F-150 Lightning. We can blame that on the global chip shortage that’s affected production resulting in prolonged delays. Not to worry, chip giants have set aside billions into facilities to increase production in an industry starved of semiconductors.
Intel Chip Plant Arizona 6 photos
Photo: YouTube Screenshot/Intel Newsroom
GM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plant
The auto manufacturer world is facing many issues right now, and the global chip shortage is a big part of the problem. The much anticipated Ford F-150 Lightning is running behind schedule due to unfavorable production conditions.

This tiny electronic part has led to massive ripples affecting global giants like General GM, Toyota, Nissan, and Honda that have all reported a decline in output.

The ripple effect is not only affecting the price of new units but surprisingly increasing the values of the used-car market. Industry insiders are optimistic that things will change but warn the effect of the shortage might extend further into the year.

After posting record sales in 2021, giant chip manufacturers have committed billions to boost the production of semiconductors and counter the industry-shifting shortage. The increased investment, predicted to run over the following years, will lead to more chip factories globally.

TSMC (Taiwanese Semiconductor Manufacturing Co.), the largest chip manufacturer globally, has invested $100 billion to increase semiconductor production over the next three years.

The Taiwanese chip giant is not the only semiconductor manufacturer ramping up production. U.S. rival Intel last year announced that it would spend $20 billion setting up two new chip production facilities.

South Korea’s biggest chip manufacturer Samsung has not revealed its investment plans for 2022. Still, a report showed it spent a significant portion of its 2021 annual capital expenditure in the semiconductor business.

Due to global demand, the chip industry’s collective annual sales reached a new high of $500 billion in 2021. Industry experts expect the sales to double to $1 trillion in less than a decade, WSJ reported.
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About the author: Humphrey Bwayo
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Humphrey is a car enthusiast whose love and passion for automobiles extended into collecting, writing, driving, and working on cars. He got his passion for cars from his Dad, who spent thousands of hours working on his old junky 1970 E20 Toyota Corolla. Years later, he would end up doing the same with a series of lemons he’s owned throughout his adult life.
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