Siem Reap Times

Friday, Jul 18, 2025

Global Semiconductor Industry Faces Persistent Challenges Amid Efforts to Boost Production

Ongoing supply chain disruptions and increased demand continue to strain the semiconductor market, prompting significant investments and policy initiatives worldwide.
The global semiconductor industry remains under significant pressure due to persistent supply chain disruptions and heightened demand across various sectors.

The shortage, which began in 2020, has notably impacted industries such as automotive, consumer electronics, and healthcare.

In response, governments and corporations worldwide are investing heavily to enhance production capabilities.

The United States, under the CHIPS and Science Act, has allocated substantial funds to bolster domestic semiconductor manufacturing.

Recent awards include up to four point seven four five billion dollars to Samsung Electronics and one point six one billion dollars to Texas Instruments for the development of new production facilities.

Similarly, the United Kingdom has unveiled a one billion pound strategy aimed at strengthening its semiconductor sector, focusing on research and development, as well as mitigating supply chain risks.

Despite these initiatives, challenges persist.

In Germany, plans for new microchip factories, including a ten billion euro project in Dresden, are facing delays amid market downturns and financial uncertainties, raising questions about the effectiveness of subsidies in fostering industrial growth.

Industry projections indicate that global semiconductor capacity could reach a record high of thirty million wafers per month in 2024, driven by resurgent market demand and increased government incentives.

China is expected to lead this expansion, with plans to commence eighteen new projects in 2024, potentially increasing its production capacity by thirteen percent year-over-year.

The situation underscores the critical role semiconductors play in the modern economy and the ongoing efforts by nations and companies to navigate the complex landscape of global supply chains and technological advancement.
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