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Vishay invests 370 million in German chip factory

Global demand for chip technology and semiconductors in particular is exploding, and the economy is responding. This is also the case for the well-known manufacturer Vishay. The company wants to further expand its plant in Schleswig-Holstein by investing 370 million euros. The intention behind this is that from now on not only 200-mm wafers but also 300-mm wafers will be manufactured at the plant in tranquil Itzehoe.

Germany is becoming a chip mecca

The semiconductor crisis has not only made it clear how dependent we are on chip technology these days. From game consoles to dishwashers, the little technical helpers are hidden in almost every modern electrical appliance. On top of that, the dependence on the Far East also became clear. It was primarily the Corona crisis that led to the sluggish production of semiconductors and thus to declining reliability on the part of suppliers. In particular, the Taiwan conflict between China and the U.S. is further fueling the West’s desire for self-sufficient chip production. Finally, experts are certain that the Taiwan conflict could reignite the semiconductor crisis.

After all, giant producers like TSMC ensure that the small island state alone is responsible for two-thirds of all global semiconductor production. With the US Chips Act and the EU Chips Act the European Union and USA quickly agreed on a joint plan to counteract. This is a subsidy plan that is supposed to ensure an increasing settlement of chip manufacturers in their own countries. And the plan is working out faster than expected. Germany in particular seems to be an attractive production location. Intel, for example, is currently building a gigantic chip factory in Magdeburg. The federal government and the EU have provided a whopping 6.8 billion euros in subsidies for this.

After Intel comes Vishay

After Intel announced the construction of its chip factory, Vishay now also has exciting news to announce. Namely, the US manufacturer wants to further expand its already existing factory in Schleswig-Holstein. A total of 370 million is to be invested in the factory in the tranquil town of Itzehoe. After the first cut of the spade took place on Monday, the 20.03.2023, the building is to start now. The expansion is expected to generate several regional and national benefits. On the one hand, a total of 150 new jobs will be created in the small town near Hamburg, as Vishay itself states.

Although production of the new chip technology is not scheduled to start until 2026, the company is already looking for employees, as site manager Leif Henningsen stated to NDR. That is quite clever. After all, Vishay plans to use the three years not only to build the factory, but also to train skilled personnel. The high investment sum serves above all the building of a completely new manufacturing hall. According to statements made by Henningsen to dpa, a new clean room will be built here, creating capacity for the production of microchips.

In-house expansion

One point then clearly distinguishes Vishay from Intel. The U.S. company wants to finance its expansion, which will require 30,000 m² of additional space, on its own. According to its own information, Vishay is not seeking government support in the form of subsidies. The plant itself has been in the region since 1996. During this time, it mainly produced 200 mm wafers. The expansion that is now to follow is intended to ensure that 300-mm wafers can also be produced. The first wafers of the latest generation should then be produced in time for the plant’s 30th anniversary in three years. The automotive industry in particular should be pleased with Vishay’s efforts. According to the company, manufacturers purchase a whopping 70 percent of the chip technology.

And the trend is rising. According to Henningsen, there has been a 10 percent increase in the last few years alone. This makes it all the more important for the company to start production as quickly as possible. In this way, the company wants to meet the demand, which is growing even more in the course of electromobility, as Tilo Bormann, head of the wafer segment, indicated to dpa. However, the company does not know whether this will involve a government subsidy. In Bormann’s view, the company is “virtually slipping through the cracks” in the area of subsidies, as he tells the FAZ. From the goal one does not want to be diverted therefore however still for a long time. “So we’re doing it on our own,” Bormann continues.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

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Global demand for chip technology and semiconductors in particular is exploding, and the economy is responding. This is also the case for the well-known manufacturer Vishay. The company wants to further expand its plant in Schleswig-Holstein by investing 370 million euros. The intention behind this is that from now on not only 200-mm wafers but … (Weiterlesen...)

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