The indefinite closure of 3M Co’s semiconductor coolant plant in Belgium could have major effects on the global semiconductor industry, in which Taiwan has a leading role, analysts said on Sunday.
The 3M plant in Zwijndrecht closed on March 8 due to tightened environmental regulations, a report on Friday in BusinessKorea magazine said.
Coolant prices have been rising since early this year due to high demand, and the Zwijndrecht plant reportedly accounted for 80 percent of global semiconductor coolant output, analysts said.
Photo: Reuters
3M on March 18 sent an official notice to its clients including Samsung Electronics Co, SK Hynix Inc, Intel Corp and Taiwan Semiconductor Manufacturing Co (台積電), the magazine said.
Citing industry sources, the magazine said that 3M’s customers could manage for one to three months with their current coolant inventories, which are essential for semiconductor etching.
Unless the situation is resolved, the global semiconductor manufacturing sector is likely to be significantly affected, the report said.
BusinessKorea said the Belgian government’s regulations were related to the emission of perfluoroalkyl and polyfluoroalkyl substances (PFAS), known for their nonstick and water-resistant properties and which have long been used in products from fabric protectors to firefighting foam.
PFAS, a controversial class of chemicals that 3M pioneered decades ago, has been linked to significant health risks, including certain types of cancer, according to news reports.
Separately, Spain plans to invest 11 billion euros (US$12.1 billion) to develop microchips and semiconductors as part of a series of strategic projects to overhaul its economy, Spanish Prime Minister Pedro Sanchez said.
“We want our country to be at the vanguard of industrial and technology progress,” Sanchez said yesterday in Madrid, without giving more details.
Sanchez said the project would soon be approved by his Cabinet.
Policymakers across Europe are racing to enact plans to invest in chips and cut reliance on imported technology. The EU aims to become a key semiconductor manufacturer with a goal of producing 20 percent of the world’s chip supply by 2030. The commission also freed up public funding for the production of chips considered “first of a kind” in Europe with its 45 billion euro Chips Act last month.
Germany is looking to grant Intel 5 billion euros in public funds to help finance a 17 billion euro semiconductor plant, people familiar with the matter said last month.
Additional reporting by Bloomberg
AVOIDING CONFUSION: Passengers are to be able to check in two items of luggage, while the free weight allowance is to be increased to conform with other airlines EVA Airways Corp (長榮航空) yesterday announced that from June 23 it is to adopt a new baggage allowance policy for all passengers with a higher weight limit as it aims to benefit passengers and increase efficiency. The airline currently has a two-system baggage policy: It allows passengers flying to the US and Canada to check in two pieces of baggage with a free weight allowance, while for those flying to Asia, Europe and Oceania there is also a free weight allowance, but no limit on the number of pieces of baggage. From June 23, passengers would be able to check in two
MORE THAN BUZZ: The chip designer said it has received numerous orders from automakers to supply 5G modem chips, as it works to expand beyond smartphones MediaTek Inc (聯發科) yesterday said it would ship the first 5G chips for vehicles to customers in the Asia-Pacific region by the end of the year, as it moves to expand the reach of its 5G chips beyond smartphones. The Hsinchu-based chip designer said it has been developing 5G chips for connected vehicles over the past few years, targeting applications such as telematics and in-vehicle information systems. “We are seeing demand for 5G technology from numerous makers of connected cars, including electric vehicle makers. We have obtained numerous orders from automakers to supply 5G modem chips with highly integrated features,” J.C. Hsu
INVENTORY DOUBLED: Key parts have backed up in warehouses, halting notebook production, as Acer’s CEO said that a gradual reopening would not solve the problem PC vendor Acer Inc (宏碁) yesterday said that lockdowns in China to control COVID-19 upended key component supply and disrupted PC production, although chip shortages have been improving. While chip supply constraints largely eased in the first quarter, the company faces uneven supplies of key components due to COVID-19 restrictions in China, Acer chairman and CEO Jason Chen (陳俊聖) told an online news conference. “Semiconductor shortage was the biggest problem in the first half of last year,” Chen said. “Now, we are beset by a supply chain issue caused by China's lockdowns.” With key components unable to be delivered and backing up in
Qualcomm Inc yesterday said it would maintain its supply chain strategy of sourcing chips from multiple foundry partners, including advanced chips from two major suppliers, to ensure a sufficient chip supply amid the COVID-19 pandemic. Qualcomm is reportedly working with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co on advanced products, such as 4-nanometer chips, for its new flagship 5G chips, the Snapdragon 8+ Gen 1 series. Qualcomm is sourcing chips made by mature technologies from several foundry partners, the company said. Alex Katouzian, general manager of Qualcomm Technologies Inc’s mobile, compute and XR business, told a virtual media briefing that
RSS