China’s SMIC To Invest US$8.87 Billion Into New Chip Plant

Semiconductor Manufacturing International Corporation (SMIC), the Chinese chipmaker that came into the spotlight at the height of the US sanctions imposed by the former Trump administration, is set to open up a new foundry. The new plant will be based in Shanghai and is expected to compete with other chipmakers, such as TSMC and Samsung.

To that end, SMIC says that it is prepared to invest upwards of US$8.87 billion (~RM36.77 billion) into the facility’s construction and has even signed an agreement with a government-back entity for the city of Shanghai. Specifically, the area in which the plant is expected to be built will be located within the Lingang Special Area of China Pilot Free Trade Zone.

Once the plant is ready, SMIC says that it plans to have the foundry ready to fabricate and churn out as many as 100000 wafers per month. As for the nature and size of the chips, reports say that the plant will be using 28nm production technology and older, rather than more modern and thinner wafers. For that matter, these larger chips are used in the production of image sensors, Wi-Fi chips, and microcontrollers, among other components that are currently in short supply globally.

The chip sector and its manufacturing process have been a flashpoint between the US and China, ever since the former began imposing sanctions on Chinese companies back in 2019. As many of you will remember, Huawei was the first casualty in the ongoing trade war between the two economic powerhouses. Then, back in September last year, the US instituted a ban on SMIC, citing national security concerns and reports that the chipmaker was involved with the Chinese military.

It also doesn’t help that the US is currently trying to block Wise Road Capital, a China-based private equity group, from purchasing the Korean Magnachip Semiconductor Corp for the sum of US$1.4 billion (~RM5.8 billion). Unsurprisingly, the US says that such an acquisition by the firm poses a risk to the “national security of the United States”.

Porsche Assembly Plant In Malaysia To Be Operational In 2022

It is something that has been rumoured for quite some time but Porsche and Sime Darby have finally confirmed that they are working together to set up an assembly plant in Malaysia. The new endeavour is part of the German automaker’s effort to strengthen its presence in Southeast Asia which has seen an increase of 9% in terms of deliveries last year despite the challenges presented by the COVID-19 pandemic.

Sime Darby is currently Porsche’s exclusive importer and distributor in Malaysia although the relationship between both companies has been going on for more than 10 years. The company also has almost 40 years of experience in vehicle assembly and operates a facility in Kulim that assembles vehicles for Hyundai, BMW, Land Rover, MINI, and Mazda.

Interesting enough, the Malaysian facility will be the first Porsche’s assembly plant outside of Europe. Not only that, Porsche also has noted that the vehicles assembled there will be made available exclusively for Malaysia.

At the moment, Porsche and Sime Darby have not yet disclosed which models will be assembled at the new facility. Nevertheless, both companies have said that production at the plant will begin in 2022.

COVID Vaccine Developer BioNTech To Build mRNA Manufacturing Plant In Singapore

German biotech company BioNTech announced that it will be building a fully integrated mRNA manufacturing facility in Singapore as well as planting its regional (Southeast Asian) headquarters there.

BioNTech is world-famous for partnering with Pfizer to develop a COVID-19 vaccine with a efficacy rate of 95% – according to the World Health Organisation (WHO). That vaccine uses mRNA to teach the body’s cells to make a protein that triggers an immune response that creates protective antibodies.

The Singapore mRNA manufacturing plant will apparently be capable of producing a range of novel mRNA vaccines and therapeutics for infectious diseases and cancer. With COVID vaccine shortages in many parts of the world right now, it goes without saying that the plant could be an incredibly important asset against future pandemic threats.

Explaining why the company picked Singapore, CEO and co-founder Ugur Sahin said, “Singapore provides an excellent business climate, growing biotechnology industry and rich talent base.” He thanked the Singapore Economic Development Board for supporting the firm’s expansion there.

The company plans to open its Singapore headquarters in 2021 and begin construction of the manufacturing plant the same year, subject to planning approval. It expects the site to be operational as early as 2023, creating up to 80 jobs in the country.