Semiconductor Equipment

Massive chip plant being considered in Raleigh

11 January 2022

The move to increase domestic U.S. chip manufacturing continues into 2022 with news that at least two major semiconductor manufacturers are considering a site in Chatham County, North Carolina, to build a new chip fab.

According to WRAL Tech Wire, the project could be worth as much as $30 billion and create as many as 10,000 jobs.

The site under consideration is the Triangle Innovation Point near Raleigh, North Carolina, which covers about 1,200 acres and previously has been under consideration for potential automotive manufacturing.

The project would be one of the largest construction projects made in the state. Recently, Toyota made plans to build a $1.29 billion battery plant at another megasite in the Triangle.

The deal hinges on the U.S. Innovation and Competition Act, which includes funding for Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, a bill that would help to increase U.S. domestic semiconductor manufacturing. The bill, which has been signed by the Senate, is in the U.S. House of Representatives and would provide $52 billion for semiconductor research, design and manufacturing.

Concerns to develop domestic chip manufacturing stem from the supply chain issues created because of COVID-19. Having most of the semiconductor manufacturing concentrated in a few locations — namely Taiwan and Korea — could lead to future supply chain fluctuations due to geopolitical conflict or future pandemics.

Chip firms are looking to build facilities in the U.S. as the world fights a continuing shortage in semiconductors and U.S. plants would be less susceptible to risks posed by global sources such as chips from China and Taiwan.

And it is not just the U.S. that is expanding chip manufacturing as Canada has its own plans to expand its domestic manufacturing and Europe wants 20% of the world’s chipmaking to be done in the region by 2030.

To contact the author of this article, email PBrown@globalspec.com


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