Computer chips are found in smartphones, laptops, cars, and many other gadgets. One might assume that in case of increasing demand, it would be quite simple to construct more factories and increase the production. Actually, semiconductor manufacturing is much more complex.
A chip-making factory, which is also referred to as fabrication plant or just fab, needs special equipment, precise control of conditions, and constant supply of energy, water, gasses, and chemicals. According to Intel, construction of a usual modern production facility could take a few years and cost billions of dollars, depending on the factory and the products it manufactures.
In the process, microscopic circuits are manufactured on silicon wafers through many cycles of production. Advanced equipment creates microscopic patterns by printing with light, other equipment deposits materials, etches off some layers, and checks the results. It all should be done with an amazing precision.
Construction is only half of the story; the next step is preparation for production.
However, even once the factory is built, it remains challenging to manufacture chips efficiently. Chip manufacturers control all stages of the production process very thoroughly because even insignificant imperfections or deviations may have an impact on the performance of the chip. The companies monitor wafers, examine patterns, and adjust manufacturing processes to increase the efficiency of their production. This is one of the reasons why a newly constructed factory cannot be immediately fully functional.
The equipment is another issue because the machines used in chip manufacturing are highly specialized, and the companies rely on complicated networks of suppliers to provide the necessary equipment. Engineers and technicians require special training because manufacturing semiconductors requires certain technical knowledge.
Finally, there is the business risk associated with making projections about future demand for semiconductors because companies should invest billions of dollars into the manufacturing capacity while being unable to predict accurately how the market will change in the future.
Thus, building additional factories will allow increasing the capacity of chip production, but it will not help solve shortages of semiconductors instantly.
