Geopolitical tensions impact semiconductor industry. Countries invest billions to diversify chip manufacturing. Visit to a new semiconductor plant in the UK. Challenges and disruptions caused by global chip shortage. Impact on auto industry. Pragmatic's unique and flexible chips. Cost comparison and advantages of modular fab. Coordinating internationally for secure supply chains. Exploring flexible chip technology and future chip demand.
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Quick takeaways
Countries are investing in onshore semiconductor production to reduce dependence on a single company and counter the global shortage.
Pragmatic's flexible chips offer a cost-effective and scalable alternative to traditional silicon chips, catering to the growing demand for connected devices.
Deep dives
Semiconductor Industry Struggles Amidst Worldwide Shortage
The global semiconductor industry has been experiencing a shortage, particularly impacting the auto industry. With a lack of supply and a single dominant player, companies are struggling to meet the demand. Countries around the world are investing heavily in onshore semiconductor production to counter this issue and reduce dependence on a single company. Despite the boom in the industry, challenges like skill shortages and duplication of efforts remain. However, companies like Pragmatic are offering an alternative solution with flexible chips that are cheaper and quicker to produce.
Pragmatic Leads the Way in Flexible Chip Manufacturing
Pragmatic, a semiconductor manufacturer based in Durham, is investing millions of dollars to create a fabrication plan for flexible integrated circuit technologies. Their chips are significantly different from traditional silicon chips, as they are ultra-thin, flexible, and cost-effective. These chips find applications in wearable health technology, clothing authentication, and track-and-trace systems. Pragmatic's facility stands out due to its modular expansion capacity and sustainable manufacturing methods. With a much smaller footprint and a fraction of the cost compared to traditional fabs, Pragmatic aims to make flexible chip production more accessible and capital-efficient.
The Future of Semiconductor Industry and the Need for Alternative Supplies
As the demand for chips continues to rise exponentially, the current capacity of silicon-based chips will struggle to meet the requirements. The industry needs alternative suppliers to fulfill the growing demand for connected devices. With the move towards trillions of devices, the need for cost-effective and scalable solutions becomes crucial. Companies like Pragmatic are at the forefront of providing such solutions with their flexible chip technology. By offering quicker production and lower costs, these alternative chips can be utilized in various sectors, including track-and-trace systems and authentication processes.
Semiconductors hit the news during the Covid-19 pandemic, as issues with supply chains led to shortages of cars and soaring prices.
Since then, geopolitical tensions have impacted the industry. 90% of the world's most advanced chips are made by TSMC in Taiwan.
Now, countries all over the world are investing billions of dollars into the industry, so that manufacturing of these chips can happen in more places and alleviate some of the problems supply chains have faced in the last few years.
In today’s episode, we visit a new semiconductor fabrication plant in the UK - the first to develop a low-cost, flexible semiconductor, as companies, and nations, race to diversity the industry.
(Picture: Two workers in PPE inside the Pragmatic semiconductor plant in Durham, England. Credit: Pragmatic)
Produced and presented by Hannah Mullane
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