The Nikkei News reports that Renesas Electronics will expand its own production of automotive chips at a Time when TSMC (2330) and other foundries are overflowing with orders. STMicroelectronics is also expanding spending to increase semiconductor production capacity in response to the shortage of automotive wafers.
The report said Renesas is moving to expand its own production of microcontrollers using 40-nanometer wafers, which has apparently increased its own production ratio, but the company did not disclose the exact output. This part of the production used to be mostly outsourced to TSMC and other operators, but the foundry is now full of orders, Renesas can only do it themselves to reduce the risk of delayed shipments to customers.
Renesas will temporarily use a production line in Changlu Naka City Naka factory; the production line previously used 12-inch silicon wafers, has previously been partially idle. Renesas will also spend more on power and raw material procurement, but the priority now is to deliver on schedule.
Although Renesas will expand its own production of wafers, but by the complexity of the production system, below 28nm products will continue to be outsourced. TSMC and other foundries are considering a 15% increase in service fees, further raising the risk of Renesas reducing its own production ratio. Renesas in the early 2010s began to outsource the production business to TSMC and other industry players, recently 30% of the semiconductor outsourcing production.
STMicroelectronics also said on the 28th, this year will invest 1.8 billion – 2 billion U.S. dollars, most of which will be used to improve production capacity, the amount is higher than the Bloomberg interview analysts forecast 1.47 billion U.S. dollars, but also higher than last year’s capital expenditure of 1.28 billion U.S. dollars.
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