UMC AMD GLOBALFOUNDRIES UNDER PRESSURE

umc taiwan

UNC of Taiwan and GlobalFoundries are both second tier foundries who are faced with the need to also modernize their respective fabs lest they fall further behind.

As earlier reported that Intel is planning to spend over $100 billion over the coming few years to expand fabrication capabilities and regaIn their leadership standing. Intel is even planning to invest $95 billion in the EU which has nations scrambling.

TSMC has spent countless billions making new fabs as well and their recent move to the US is a wide diversification move. Earlier some reports that TSMC customers were stockpiling devices forcing the company to cut some customers off so that production could be shifted.

UMC has specialized more on automotive components which have been in short supply for quite some time. GlobalFoundries also manufactures automotive components. More recently UMC is feeling pressure from Chinese foundries which strive to provide China with semiconductor independence.

The pressure from China is probably the main motivation for TSMC to setup a line in Arizona. UMC does not have the capital clout to follow TSMC. The geopolitical issues with new US moves to regaIn their dominance with over $50 billion in spending suggests some material changes in the semiconductor landscape.

China has its own headaches with power outages and air pollution. Small wonder they chased out the bitcoin miners. Power outages can destroy the production at a foundry resulting in losses in the millions. The world’s biggest polluter is trying to meet a pledge that its carbon emissions will peak before 2030. That requires its provinces to use less fossil fuel for each unit of economic output, for example by burning less coal to generate power. At the same time, demand for Chinese-made goods has surged as the global economy emerges from the pandemic. The result: not enough power to go round.