Germany is seeking to become a leading hub of semiconductor manufacturing. With its world-class automobile industry now going through digitalization and electrification, the country has also become a spearhead of Europe’s quest to regain semiconductor global leadership. In March, Intel unveiled its plan to invest at least US$19 billion into a leading-edge fab in the city of Madgeburg, located in the German state of Lower Saxony, while another federal state – Saxony – already hosts Europe’s largest chip ecosystem, and aspires to attract foundries like TSMC to set up local presence. GlobalFoundries, which operates a 300mm fab (Fab 1) in Saxony’s capital Dresden, also disclosed in 2021 its intention to invest US$1 billion for Fab 1 expansion over the next two years. The momentum is nevertheless challenged by factors both internal and external.

Notebook ODMs were encouraged to sign three-year non-cancelable and non-returnable (NCNR) contracts with their IC suppliers in 2021, but such supply deals have become a headache for ODMs amid weak end-market demand, according to industry sources.

Taiwan is exporting more ICs to Malaysia, where the local backend industry output value has risen in recent years, according to the Ministry of Economic Affairs (MOEA).

Brisk demand for cloud computing solutions and automotive electronics boosted revenue of EMS provider Lite-On Technology in the third quarter of 2022.