Taiwanese semiconductor producer Global Wafers  will invest $3.6 billion in new production sites in Asia, the US and Europe, Kallanish notes.

The company notes that production could increase in the second half of 2023, but did not give more details.

Earlier, Global Wafers' bid to acquire Siltronic failed after German regulators did not review it until 31 January. Thus, the Taiwanese company announced that the several billions allocated for the deal will be used to expand production capacity.

Global Wafers is the world's third-largest maker of silicon wafers, used in semiconductors for automotive information technology, and other industries. The company has plants in Taiwan, Japan, the US, South Korea, China and Southeast Asia.

This week, the EU announced a €43 billion ($49 billion) plan to become a major chip producer to ease dependency on Asian manufacturers of the components.

The new Europe Chips Act will link research and coordinate EU and national investment. The plan will combine public and private funds to allow for state aid to provide for massive investments to boost chip production.

In 2021, global production of 9.5 million vehicles was delayed due to a lack of chips, the European Association of Automotive Suppliers (CLEPA) said last week. Although this year could show a modest recovery in global light vehicle production, supplier and market estimates still forecast, on average, production losses of 4-6m vehicles, CLEPA claims.

German carmaker Volkswagen Group expects the supply of semiconductors to the automotive industry to continue to be strained through 2023.