America is trying to fix the chip shortage one factory at a time

“Making chips is an intricate process, but building a factory that can do this type of manufacturing is even more complicated. For one thing, fabs can’t go just anywhere. They need to be close to a reliable source of electricity, since they can use as much energy as 50,000 homes in a single year (they release a lot of carbon emissions, too). These factories also need to be near a large body of water, which they use to clean and cool down their equipment, which, in turn, produces wastewater that needs to be treated. And it’s better if they’re not particularly close to any airports or geological fault linesseismic activity can disrupt the incredibly precise machinery they use.

Then there’s the matter of the supply chain. Beyond the fab, making a chip can involve 70 different border crossings and more than 1,000 steps, and a single disruption in one country or during a particular step can throw the entire process off course. That’s because there are usually very few, if any, other options for supplies when something goes wrong. For example, just one company in the Netherlands, ASML, makes the specialized, $200 million lithography tools that many advanced chip fabs rely on. And just two firms, both based in Ukraine, supply about half of the specialized neon gas that fabs throughout the world use to control these lasers. Of course, securing all this equipment has gotten even more difficult during the pandemic.”

“concern is based, in part, on fears that China may invade Taiwan at some point and attempt totake control of its chip-manufacturing capacity. But there are other reasons to be worried about the state of US semiconductors. The US doesn’t currently make very many of the most basic, or legacy, chips, which are typically produced where they can be made for less. These are the chips that became unavailable during the pandemic, and that made lots of technology hard to find and drove up car prices. The US will also need to manufacture more chips to maintain its hold on the auto industry, since EVs will likely need at least twice as many chips as their gas-powered counterparts do.”

https://www.vox.com/recode/23048906/chip-shortage-manufacturing-america-biden

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