SBI Holdings to Support Semiconductor Plant Construction & Samsung to Strengthen Semiconductor Foundry Business & BYD to Invest in Industrial Facility in Brazil

Here are some trending news topics in the automotive and mobility markets around the world.

We will carefully select three interesting news items from the automotive industry and present the information in a concise and easy-to-understand format to help you speedily understand the latest developments in this field. We will also feature news from overseas media and other sources.

SBI Holdings to Support Taiwan Powerchip’s Semiconductor Plant Construction in Japan

July 5, 2023

SBI Holdings announced that it has reached a basic agreement with Powerchip Semiconductor Manufacturing Corp (PSMC), a major Taiwanese semiconductor contract manufacturer, to establish a preparatory company to establish a plant in Japan.

According to the announcement, PSMC is the third largest semiconductor contract manufacturer in Taiwan and the sixth largest in the world. In addition to being able to produce both logic and memory semiconductors of different types, PSMC also has strengths in power semiconductors for automotive applications. The new plant in Japan will produce semiconductors for automotive and industrial applications, and in the future will also produce 3D stacked and high-value-added semiconductors of 28 nanometers or smaller, SBI President Yoshitaka Kitao said they are currently looking at three or four candidate sites and expect to begin manufacturing two years after construction begins.

The partnership between SBI and PSMC comes as Japan provides billions of dollars in subsidies to overseas chip companies to attract them to build or expand production facilities so that automakers and technology companies can obtain key components amid rising global demand

Japan has already pledged 400 billion yen ($2.8 billion) to help TSMC, the world’s largest semiconductor contract manufacturer, build a plant in Kumamoto Prefecture that will supply semiconductors to the Sony Group and auto parts maker Denso. It has also provided subsidies to help memory chip makers Keoxia and Western Digital expand production at their Japanese plants, and is funding U.S. chipmaker Micron Technology to increase production capacity at its Hiroshima plant.

Source: SBI Holdings to help Taiwan’s Powerchip build a plant in Japan

Samsung Strengthens Chip and Foundry Business, Eyes Challenge to TSMC

June 28, 2023

The semiconductor foundry business of Samsung Electronics Korea aims to catch up with the market leader, Taiwan Semiconductor Manufacturing TSMC, by increasing production capacity and introducing more advanced manufacturing technology.

Samsung announced that it will introduce a 2-nanometer manufacturing process for cell phone components by 2025 to expand applications. The company also announced plans to increase production in Pyeongtaek, Korea and Taylor, Texas to strengthen its foundry division.

The company is trying to catch up to TSMC and at the same time meet new challenges from Intel Corporation, which is entering the foundry market. While the semiconductor industry as a whole is suffering from sluggish demand for mobile and PC components, the artificial intelligence (AI) boom has increased interest in advanced processors.

Like other semiconductor manufacturers, Samsung is trying to geographically distribute its manufacturing facilities, which are concentrated in East Asia. The company, which has operated its Austin, Texas, site for about 20 years, completed its new Taylor plant this year and aims to begin operations in late 2024.

With the expansion of production lines at the Pyeongtaek and Taylor factories, Samsung’s production capacity will increase sevenfold by 2027 compared to 2021. In addition to its current semiconductor manufacturing facilities, Samsung will also expand into a new production facility in Yongin.

Source: Samsung Beefs Up Chip Foundry Business as It Looks to Challenge TSMC

China’s BYD Invests $620 Million in Industrial Facility in Brazil

Chinese automaker BYD announced that it will invest R$3 billion ($602.7 million) in a new industrial facility in northeastern Brazil.

The complex, to be built on the site of a former Ford plant that closed in 2021, will consist of three plants and will be located in the Kamakali Industrial Park in the northeastern state of Bahia.

The announcement reportedly follows a push by the Brazilian government to encourage BYD to build a new EV vehicle hub after Ford closes its plant in the state. The plant is scheduled to begin operations in mid-2024.

According to a company statement, the first plant will specialize in the production of bus and electric truck chassis. The second plant will produce hybrid vehicles and EVs, with initial production estimated at 150,000 units per year. The third plant will process lithium and iron phosphate for overseas markets.

The plant facility is expected to create more than 5,000 jobs.

Source:. China automaker BYD to invest $620 million in Brazil industrial complex