CHIP SHORTAGE NEWS Global chip shortage 2023 - updates in May

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How are companies responding to the chip shortage and what are policymakers commenting? Here we sum up the most important events related to the global shortage of microchips. The article is updated continuously.

Germany’s chip production goals face energy and worker challenges

Jolted into action by the pandemic and resulting semiconductor shortages, the European Union is rolling out a plan to double the bloc’s share of global chip production to 20 percent by 2030, an effort that will see the mobilization of billions of euros in investment.

Industrial powerhouse Germany is hoping to lead the upcoming European chip renaissance, with major investments from the likes of TSMC, Intel, Infineon, and Bosch already announced. Though promising, these investments face several challenges ranging from high energy prices to worker shortages.

For example, Intel’s Magdeburg project, which was announced last year alongside a EUR17 billion investment package, has been delayed indefinitely after inflation surged following Russia’s invasion of Ukraine. Construction was supposed to start in the first half of this year. "Geopolitical challenges have become greater, semiconductor demand has declined, and disruptions in the global economy have resulted in increased costs, from construction materials to energy," Intel said in a statement.

Another challenge is finding enough workers. In occupations key to the chip industry, there’s a current shortage of 62,000 skilled workers according to a study from the German Economic Institute last year.

Europe has a lot of lost ground to make up in terms of global chipmaking share, and challenges like these will need to be overcome if the bloc has any hopes of meeting its lofty goals.

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Analog Devices invests in next generation semiconductor R&D and manufacturing facility in Limerick

Qualcomm to acquire Israeli chipmaker

Chip designer Qualcomm announced on Monday, May 22nd, that it intends to buy Autotalks Ltd, an Israeli-based company specializing in automotive chips. Autotalks makes chips used in so-called ‘vehicle-to-everything’ (V2X) communications technology for manned and driverless vehicles to improve road safety.