Supply chain security and new applications drive chip manufacturers to accelerate the deployment of localized production capacity

1. TI: Increase 12-inch production capacity in the United States to consolidate its leading position in analog

• obtainUS CHIP bill $1.6 billion in subsidies, used in the construction of three 12-inch wafer fabs in Texas and Utah
• Goal: By 2030, the proportion of internally owned production capacity will exceed95%, with a total investment of US$30 billion to build six new 12-inch fabs
• Production pace:
  • SM1: put into production in mid-2025
  • LFAB2: put into production at the end of 2026
  • SM2: put into production later, facing medium and long-term demand
• Impact: Costs continue to decline, and global analog chip price competition intensifies, putting greater pressure on domestic analog manufacturers.

2. The three European giants: deeply bind local fabs to seize the Chinese and Asia-Pacific markets

1. STMicroelectronics ST

• withHuahong HongliCooperation, new construction in the country40nm STM32 MCUproduction line
• The first batch of products will be launched at the end of 2025 and will be promoted simultaneouslyeNVMEmbedded storage
• Main focus: automotive and industrial high-end MCUs, close to the supply chain of Chinese car companies

2. NXP

• Singapore and VIS jointly build 12-inch fab, covering 40–130nm, mass production in 2027
• China strategy: withSMICDeepen cooperation and study the production capacity of TSMC Nanjing and Huahong subsidiaries
• Make it clear: for customers who prefer Chinese local chipslocalized production

3. Infineon

• Transfer some product manufacturing links toChinese foundry
• In response to the needs of the Chinese market, promoteConsumer/industrial product localization

Common logic: abandon long-distance deployment and supply products nearby; focusAutomotive regulations, AI, industryHigh-end market, avoid low-end price war.

3. TSMC: Becoming the core pillar of localized production capacity in Japan and Europe

1. Kumamoto, Japan (JASM)

• The first phase has been put into production: 22/28nm, 12/16nm, serving Denso and Sony, as well as Microchip and ADI.
• Phase II under construction: 6–40nm, to be put into production in 2027
• The combined monthly production capacity of the two factories exceeds100,000 pieces, supporting the independent supply of Japanese car specifications/image chips

2. Dresden, Germany (ESMC)

• Joint venture with Bosch, Infineon and NXP, German government subsidies
• 12 inches, 28–12nm, mainly automotive + industrial chips
• It will be put into operation in 2027, with a monthly production capacity of approximately41,700 pieces
• Positioning: Core manufacturing base for advanced European processes (within 28nm)

4. Opportunities and challenges brought by the wave of localization

opportunity

1. Global supply chain redundancy has increased significantly,Lack of cores makes it difficult for the crisis to happen again
2. Production capacity in high-value tracks such as automotive, AI, and industry will be released intensively to support intelligent upgrades.
3. Domestic car companies, industrial control, and AI server manufacturersSupply nearby, shorten delivery time, and reduce risks

challenge

1. The global mature process production capacity is concentratedly released,General chip price war intensifies
2. Giants such as TI, ST, and NXP are sinking, and the competition for local mid- to low-end chips has become more intense.
3. The low-end market is gradually saturated, and domestic manufacturers must quicklyAutomotive, AI, high-end simulationBreakout

Summary

• IDM（TI）: Build self-built production capacity and strengthen cost and supply control
• fabless and IDM (ST/NXP/Infineon): Bind to regional foundries to achieve localized production nearby.
• TSMC: Become the core contractor of Japan and Europe’s advanced vehicle specifications/industrial chip production capacity