Fab Investment is on the Rise in China, TSMC and Others Actively Building Fab Capacity
There is a load of interest when it comes to construction growing in China and this is mostly due to the involvement of the Chinese government. Unlike other countries, China realizes that building is not their core competency so they are taking all the help they can get from overseas. Getting expertise from abroad is helping them in this line of work. This factor constitutes to the fact that fab investment is on the rise in China.
The Chinese government is taking steps in order to pull foreign investors to invest their money in China. While some of these strategies have been successful this can not be said for all of them. With this being said, the Chinese government may have found a pattern to lure foreign investment into the country. This includes providing relevant incentives.
UMC is one of the Fab investing companies in China. The Taiwan based company set their venture company in Xiamen back in 2014. This company is one of the many reasons why fab investment is on the rise in China. The company anticipates investment of $1.35 billion over the course of 5 years.
Early this year, TSMC formed a partnership with the municipal government of China with a $3 billion investment plan.
This is the latest company to invest in fab in China and is another one of the reasons why fab investment is on the rise in china. GlobalFoundries will focus mainly on development of battery management, and AC/DC conversion. This can in turn lead to the product of more advanced nodes in the foreseeable future.
Though there are international players in the market, this does not in any way mean that the local foundries are idle. They are working at what they do best and keeping in pace with productions in their respective line of work. Though fab investment is on the rise in China, the local foundries are still doing their part.
It is safe to say that China has huge potential, no wonder why fab investment is increasing there. What is to come only time will tell but there seems to be a pattern to all this and we might see China as the biggest manufacturing centre one day.