South Korea sees a semiconductor opportunity: South Korea’s recent $450 billion semiconductor spending plan—the latest global government-backed chipmaking move—may signal a move away from a chip industry once dominated by a small handful of countries

Heavy reliance on a single chip producer is exposing risks to the global economy, a reality that’s only become clearer amid the global semiconductor shortage and which is resulting in higher costs being shouldered by consumers. Surging demand for electronics during the pandemic overwhelmed the semiconductor industry and led to a global shortage expected to last another 18 months, per CNBC.

President Joe Biden is calling for a whopping $50 billion in spending on semiconductor production and research amid a global semiconductor shortage that’s ravaged global supply chains. Part of the administration’s $2 trillion infrastructure bill, the proposals come as a diverse array of industries continue to announce production cuts and delays directly tied to scarce semiconductors.

The news: TSMC, the world’s largest chipmaker, is considering building its first European semiconductor plant in Germany as well as expanding into Japan, per Nikkei Asia. While the plans are still in preliminary stages of seeking potential partners and assessing needs, they mark a shift in strategy for TSMC, which has historically concentrated the majority of its chip production in Taiwan.

The EU has committed to producing 20% of the world’s semiconductors by 2030.

Semiconductor shortages arising from the pandemic have wreaked havoc on the auto industry, projected to cost automakers up to $61 billion in lost revenues for 2021. These shortages will especially affect electric and autonomous vehicles, which require more sophisticated chips than more traditional vehicles.

But in 2021 we expect a drop in both spending on vehicles and parts and in automotive’s share of total sales, as a global semiconductor shortage hits the sector and other categories rebound to some extent. Germany is also notable for comparatively high retail spending on health, personal care, and beauty—a reflection of widespread interest in wellness, organic nutrition, and natural cosmetics.

The semiconductor startup is looking to address the 5G connectivity and compute market for large enterprises in sectors like manufacturing, construction, energy, automotive, and warehousing. Founded: 2018. Total funding: $51 million. Stage: Series A. Notable investors: Fusion Fund, AME Cloud Ventures. Headquarters: Santa Clara, California.

Even then, the momentum and resources of the Chinese economy will not be easily replicated—"Made in China" initiatives have seen the government invest billions in advanced manufacturing sectors, including telecommunications equipment and semiconductors. 2.