Can Indonesia Build Its Own Semiconductor Chip Factory?


The scarcity of semiconductor chips still overshadows the global automotive industry and Indonesia. As a result, the vehicle production process was disrupted, thus reducing production capacity. To overcome this, is it possible for automotive manufacturers to build their own manufacturers of semiconductor chips?

Executive Vice President & COO of PT Yamaha Indonesia Motor Manufacturing (YIMM), Dyonisius Beti, said that it was unlikely that vehicle manufacturers would make their own semiconductor chips by building a factory directly.

According to Dyon, this is related to the global supply chain system that has been going on for a long time. In addition, building a semiconductor chip factory also requires a very large investment. So it’s a bit impossible for motor manufacturers to make their own chip components.

“Semiconductor is another technology, it cannot be produced or produced by Indonesia itself. Therefore, it requires tens of billions of dollars in investment,” said Dyon to reporters at the JIExpo Kemayoran arena, Jakarta, Friday (27/5/2022).

“In addition, the supply of chips from the largest chip factories is not only for motorcycles or automotive. But also supplies for all microchip industries such as mobile phone factories and so on. Now that’s the largest factory in the world, right at TSMC (Taiwan Semiconductor Manufacturing Company Limited) and Samsung, yes. So semiconductor investment in Indonesia has been out since the beginning. So Yamaha or car manufacturers and other brands cannot produce their own chips. But on the other hand we can localize to use some resources to improve, “continued Dyon.

Dyon himself has not been able to confirm how long the shortage of this chip will occur. However, if you can give a prediction, the shortage of semiconductor chips is likely to continue until the end of 2022.

“We have information that their investment (semiconductor chip producer) has been completed, all that’s left is to run the installation of the production machine. Maybe it won’t take long, until the end of this year,” explained Dyon.

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