Electronics Weekly Electronics Design & Components Tech News
Investments in fab by TSMC, Bosch, NXP and Infineon are “good for the European car industry but it’s not enough. It’s not enough at all,” says Wennink, “if you want to get to 20%, you just have to calculate how much you need to build here.”
In 2022, Kurt Sievers, CEO of NXP stated: “We have calculated that we would need €500 billion investment in Europe to reach the 20 percent market share goal.”
According to SEMI, China will have 8.6 million 8 inch equivalent wpm capacity this year, Taiwan will have 5.7 million wpm, Korea will have 5.1 million wpm, Japan will have 4.7 million wpm, the USA will have 3.1 million wpm, Europe will have 2.7 million wpm, and S.E.Asia will have 1.7 million wpm.
So Europe has roughly 8% of the industry measured by capacity and has roughly 8% of the market measured by value.
To up that to 20% in a world where capacity is currently growing at about 6% a year would need about a dozen new fabs to be built and in full volume production by 2030.
It was only $120bn when Malcolm and I did the figures for Neelie ten years ago, again to get from the then 9% to the 20% she hoped for as well.
Shows that in semiconductors you need to get in early as semiconductor production cost inflation far exceeds normal inflation.
By the time Europe does get round to doing anything it will cost $1trillion.
You’re assuming ‘normal inflation’ is accurate. Shadowstats regularly shows it running 5%+ higher than the reported figures, Government figure fudgery may be why many are feeling poor.
I don’t think anything from potatoes to houses have increased by a factor of 4 in the last ten years. Indeed a few things are actually cheaper, petrol for example.
I bot 50# pinto beans @ $0.40/lb. Today the shelf price is $1.50/lb. Got plenty.
Yes but how much of your annual budget is whatever a pinto bean is ? Taxation is around 40% of average person’s budget (in the UK), housing next and food, insurance and fuel (car and heating) the next three in some order or another.
Taxes move a little but never that much, housing has about doubled in 10 years, depending on location, food is well under double despite all the newspaper headlines, and insurance about 40% up on average, although obviously those making claims see huge rises whilst for some it’s actually cheaper than 10 years ago as insurance risk models have gained accuracy.
In the UK table 4 from https://www.ons.gov.uk/file?uri=/economy/inflationandpriceindices/datasets/consumerpriceinflation/current/consumerpriceinflationdetailedreferencetables15022022174940.xls
provides an excellent and accurate tracking of all item categories individually so you can see the real numbers, rather than some averaged number that doesn’t represent your real outgoings.
So still nowhere near 4:1.
True, Mike. I live like a poor hermit and invest my surplus. Living expenses have almost doubled in the past five years, not fourfold. The inflation is tolerable for me, but the average person lives paycheck to paycheck at an extravagant standard of living compared to mine. They feel pinched because they NEED the latest cell phone, concert tickets, travel, new car, double mocha latte, stylish clothes, violin lessons, air conditioning and heat, cable TV, subscriptions, day care, private school…. My pleasures are reading, learning, thinking, trading thoughts, exercise, cooking, planning, growing flowers, and dreaming. I had to give up scotch.
Moreover the European car industry cannot survive in Green Europe. Energy intense industries cannot compete. Well deserved punitive US tariffs alone will kill the auto industry. Europe should not have participated in the fraudulent election coup of President Trump. What goes around comes around.
What are you talking about?
It’s a mystery wrapped in an enigma, that’s FE.
Very occasionally it does make some sort of sense.
They could, if they made tanks instead of cars.