Spain will spend 11 billion euros on the semiconductor and microchip industry
Following other EU countries, Spain has joined the investment club on chips and semiconductors to attract chip makers to build native factories. The semiconductor industry is a booming market. Countries that invest deeply in its development gather billions in revenue each year. Spanish Prime Minister Pedro Sánchez announced the move on behalf of the government to invest 11 billion euros ($12.1 billion) in the semiconductor and microchip industry.
The announcement on Monday was pretty surprising as the country had never invested this much in the semiconductor and chip industry. The spending plan is not set up yet. Still, under the European Union pandemic relief funds, they will “soon” be approved. Supply chain issues, pandemics, and many unknown reasons keep the semiconductor and chip industry on its toes. Worldwide shortage due to the peak of demand and lower supply is even more devastating than the other reasons. Within the supply chain bottlenecks, we are developing newer ways on how semiconductors can make our lives easy.
The news was initially covered in the Reuters when Spanish Prime Minister Pedro Sánchez spoke at a Parliamentary session in Madrid on 30th March 2022. Spain becoming a semiconductor and microchip manufacturer will surely benefit the global supply chain as more and more expansions are needed to fill the void.
“Global geostrategic importance” should be covered in any way possible if countries or governments can afford it. The mission is the same for Spain to become a part of native semiconductors and chips.
Major chip suppliers remain Intel (INTC), Samsung, TSMC, SK Hynix, Nvidia, AMD, QUALCOMM, Micron, Applied Materials, and Broadcom Corp. They manufacture most chips we use every day in our household and businesses.
Even though the investment seems like a large number, the number should be much higher to play the semiconductor game. Spain’s effort to dip their toe in the water before jumping into full-fledged supply chin. Keeping the facts aside, the move is greeted warmly among semiconductor and chip manufacturers as more player means superior innovation.
The Local said, “Spain wants to lead the way in Europe in terms of microchip and semiconductor development.” It is something many of us look forward to.
Semiconductors and microchips are needed for all goods that have the modern artefact. Smartphones, computers, home products, cameras, television, washing machines, healthcare equipment, cars, and LED bulbs use tiny integrated chips. It took a lot of consideration for the Spanish government to conclude that they needed to first jump into the matter.
The “Wake up, Spain” tech conference took place on Monday. The President said, “The Spanish government wants our country to be at the forefront of industrial and technological progress.” The news received a lot of praise and attention, as it should.
More than 932 billion chops were manufactured around the world in just 2020. In 2021 the industry was crossing a whooping €550 billion.
Taking part in it is undoubtedly a bold move. But not everyone who has the resources can manufacture world-class chips. You may have the investment money in billions. Still, the ground-up technology would be too medieval to use in modern hardware.
With the supply chain issues rising and coronavirus blocking regular shipments, more and more problems are piling up. Taiwan is one of the crown manufacturing destinations for chips is taking a lot of time to reach every nook and corner.
The Spanish government would have to collaborate with significant manufacturers in contract to lead the way. Once the country is adequately habited with semiconductor manufacturing, they can do it freely. Only then will the reasonable goal will be achieved.
Prime Minister said it was a challenge to receive the funds, but the important ones lie ahead. Making the execution process swift and efficient is the goal to make an “impact on people’s daily lives.”