May 16, 2022

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South Korean Chip Maker Planning New Factory in Michigan

With desire for semiconductors soaring, SK Siltron, a South Korean semiconductor wafer maker, designs to construct a $300 million producing plant in the coronary heart of U.S. automobile field, a little a lot more than 110 miles north of Detroit. 

GM a short while ago declared ideas to temporarily shutdown its Orion plant wherever it builds the Bolt due to the chip scarcity.

The new facility in Check Township, which is just exterior Bay Town, Michigan, will aid electric powered vehicle advancement, creating up to 150 jobs. The company is investing $302 million to create the new operation. It is the company’s next facility in the point out.

The task also builds on Michigan’s place in semiconductor provide chain, electrical vehicle development by producing extra of the chips the auto marketplace in Michigan, in accordance to the Michigan Economic Advancement Corp. 

Automakers throughout the globe have been scrambling for provides of semiconductors, which have been in brief source. The shortages have curtailed output for the earlier numerous months, prompting President Joe Biden to call for the growth of semiconductor producing capacity in the United States.  

Electric vehicle advancement spurring development 

Biden waves at CEO Chip Summit
President Joe Biden has consistently pushed for growing semiconductor creation functionality in the U.S.

“The expansion of electric powered automobiles is opening an enjoyable new chapter for the auto industry as it presents individuals with extra environmentally helpful transportation options,” said Jianwei Dong, chief govt officer for SK Siltron CSS. 

Past month, the Michigan Strategic Fund announced support for Ford’s new battery center, dubbed Ion Park, providing further proof that Michigan continues to arise as an electric car R&D and manufacturing chief, the MEDC mentioned.  

Ford will spend $185 million in its new world wide battery heart of excellence, which will be house to as quite a few as 200 staff focused on the advancement and generation of lithium-ion as very well as good-state batteries

“Ford currently is delivering on our plan to guide the electric powered revolution with solid new automobiles together with Mustang Mach-E, 2022 E-Transit offered late 2021 and the 2022 F-150 Lightning available from spring upcoming year,” reported Anand Sankaran, Ford Ion Park director. 

2022 Ford F-150 Lightning charging
EVs use about $550 worthy of of semiconductors for the powertrain as opposed with just $80 for inside combustion engines.

“The new lab will enable Ford pace up the battery growth method to provide even far more able, affordable batteries and is component of Ford’s renewed determination to generating Michigan a centerpiece of its emphasis on EVs.”

Semiconductor business faces challenges 

“Every motor vehicle that receives smarter requires a lot more semiconductors,” said Kroeger, who extra during the interview he predicted the shortages very well into 2022. 

Electric cars have to have extremely powerful and effective semiconductors in order to get extra range out of just about every kilowatt hour of battery, he added. The usual gasoline-driven product can use as quite a few as 100 microprocessors — or extra — to work every little thing from their powertrain controls to their infotainment and digital safety programs. 

With BEVs, that amount can run into the hundreds, several of those chips required to watch the health and fitness of the cells that make up a battery pack. 

UBS analyst Francois-Xavier Bouvignies told CNBC past 7 days that vehicles with inside combustion engines typically use close to $80 worth of semiconductors in the powertrain, but electrical motor vehicles use all-around $550 well worth.