US Chipmaker GlobalFoundries To Build New US$4 Billion Factory In Singapore

US chipmaker GlobalFoundries (GF) is constructing a new US$4 billion (~RM16.6 billion) factory in Singapore, an expansion clearly made in view of the ongoing global chip shortage plaguing multiple industries.

The new plant is expected to create about 1,000 jobs – around 95% of which will be high-value positions such as technicians, process technicians, and engineers, The Straits Times reported.

“Our new facility in Singapore will support fast-growing end-markets in the automotive, 5G mobility and secure device segments with long-term customer agreements already in place,” said GF CEO Tom Caulfield.

The company said it plans to add 250,000 square feet of cleanroom space and new administrative offices in Singapore, increasing its manufacturing capacity there for 450,000 additional wafers per year. That will boost the total capacity of GF’s Singapore campus up to approximately 1.5 million (300mm) wafers per year.

Expecting global semiconductor revenue to grow by 2.1 times in the next eight years, the company is expanding capacity at all its manufacturing sites, including those in the US and Germany. It’s no surprise that all the major chipmakers, including TSMC, Samsung, and Intel, are racing to build new factories or upgrade manufacturing capacity at existing ones.

The Straits Times said that the GF factory is expected to begin production in January 2023 and reach full capacity by early 2024.

Indonesia And LG To Build US$1.2 Billion Electric Vehicle Battery Factory

Indonesia announced that government-owned Indonesia Battery Corporation (IBC) and South Korean electronics giant LG will be building a new electric vehicle (EV) battery factory worth US$1.2 billion (~RM5 billion) with the capacity of 10 gigawatt hours (GWh).

According to a Reuters report, the factory is part of a larger US$9.8 billion (~RM40.6 billion) EV deal signed between LG and Indonesia last year. It’s set to be constructed in the city of Bekasi, which lies on the eastern border of Jakarta.

Indonesian Investment Minister Bahlil Lahadalia made the announcement, but didn’t specify a time frame except that the plant would be built “in the near future”.

“The first phase of construction will have the production capacity of 10 GWh, which will later be used for EVs from Hyundai,” he said.

Earlier, Reuters reported that LG Energy Solution, the firm’s battery production division established last year, is keen to make advanced battery cells for Tesla in 2023. To that end, the former is reportedly considering setting up production sites in the US and Europe.

No doubt, all this signals a broader shift towards EVs. Indonesian officials have indicated that the country wants to produce 140 GWh worth of batteries by 2030.

Sony Introduces Fully Unstaffed Production Line At Malaysian TV-Making Factory

Sony has deployed its first fully unmanned production line at a TV-making factory outside Kuala Lumpur and plans to expand automation to other lines there too.

According to Nikkei Asia, the electronics giant is embracing this kind of technology to better compete with its South Korean and Chinese competitors. Indeed, the automation move is projected to cut production costs at the factory by 70% from fiscal 2018 levels by fiscal 2023.

The company is employing off-the-shelf robots, but is internally developing key elements such as control programming. It described full automation as challenging due to processes that involve parts that are difficult for robots to handle.

Unsurprisingly, with the shift to automation, Sony will gradually reduce the factory’s workforce of thousands, opting not to renew their limited-term contracts. The company also plans to automate audio equipment production at the KL factory after shutting its main audio equipment factory in Penang by September.

Once the automation technology is firmly rooted at the KL plant, the electronics giant will consider employing it at other factories as well. It’s extraordinarily timely considering the havoc COVID-19 has unleashed on global manufacturing. For example, Foxconn factories in India and Vietnam have recently seen work disruptions because of the pandemic.

On the flip side, automation does generally mean fewer jobs in the medium- to long-term, bringing with it economic, political, and social problems. Indeed, the loss of manufacturing jobs in the US (mainly due to technology) has caused considerable anger and resentment.

Xiaomi Will Start Making Electric Vehicles Using Great Wall Motor Factory

Following in the footsteps of Baidu and others, it appears that Xiaomi is getting into the electric vehicle (EV) business. The Chinese firm is set to produce EVs using a third-party factory, sources told Reuters.

The factory is owned by Great Wall Motor (GWM), China’s largest pickup truck maker, which will also provide engineering consultancy to accelerate the project, one source said. Earlier in the year, GWM launched a standalone brand for electric and smart vehicles.

According to a source close to Reuters, Xiaomi wants to launch its first EV by 2023, which will predictably be able to connect with other devices in the company’s product ecosystem, such as its smartphones.

Targeted by US sanctions and largely dependent on smartphone sales, the Chinese firm may be looking to diversify its sources of income. It’s been hurt by the global chip shortage and recently announced quarterly revenue below market expectations.

Also, EVs are the hottest thing right now – search giant Baidu recently formed a joint venture company with automaker Geely to produce “intelligent” EVs with autonomous driving technology. Their planned launch date is roughly around the same time – about three years from now.

Another Reuters source said both Xiaomi and GWM intend to unveil their partnership as soon as early next week.

We’d like to point out that GWM vehicles are currently being sold in Malaysia. So would you fancy buying a Xiaomi car in the near future? Let’s not get ahead of ourselves though – like Geely’s Zeekr, Xiaomi might be planning to focus first on the massive Chinese market.

SK Nexilis Decides to Open Copper Foil Factory in Kota Kinabalu

South Korean copper foil manufacturer SK Nexilis will be building its first overseas plant in Kota Kinabalu, the company announced on Tuesday, according to The Korea Times. Copper foil is a key material in the production of batteries for electric vehicles – a burgeoning industry that has seen incredible recent interest from global players including Apple and Baidu.

The South Korean company said it picked Kota Kinabalu and Malaysia because of power considerations. Malaysia has the most stable power supply in Southeast Asia, it said, along with a low electricity cost and a high dependence on hydropower. Kota Kinabalu was also picked because of its abundant land available for factory expansion, as well as convenient infrastructure – access to a port and international airport.

The RM2.3 billion factory will be constructed in Kota Kinabalu Industrial Park, and will begin commercial operations in 2023. It will be capable of churning out 44,000 tons (50,000 – according to MIDA) of copper foil every year, and, when completed, will push SK Nexilis’ total battery copper foil production capacity to 100,000 tons annually.

“At the Malaysian plant, we will build facilities that can fully materialise our technology of making the thinnest and widest battery copper foil,” Kim Young-tae, CEO of SK Nexilis, reportedly said. “By building the plant in Malaysia, we will improve cost competitiveness and enhance our commitment to RE100, so we can consolidate our status as the world’s No. 1 supplier of battery copper foil.”

RE100 is a global initiative that has companies commit to operating on 100% renewable energy. That explains SK Nexilis’ reference to hydropower in Malaysia. All in all, Malaysia may be (slowly) turning out to be a key industrial base for the production of electric vehicles.