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
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
RSS