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I’m well! Indonesia Will Have Its Own Semiconductor Chip Factory

Jakarta

The Association of Indonesian Automotive Industries (Gaikindo) said that Indonesia still lacked the supply of semiconductor chips. However, there is a breath of fresh air for the country’s automotive industry because Indonesia will have its own semiconductor factory located in Batam.

“The Ministry of Industry has also made a breakthrough. We will also hold a meeting on Bintan Island. We will also go there to discuss with chip manufacturers. It turns out that the technology is controlled by only one or two countries in the world, one of which is the Netherlands,” said Gaikindo General Chair Yohannes Nangoi , when met at the Sheraton Hotel, South Jakarta, Wednesday (20/7/2022).

Nangoi said the shortage of semiconductor supplies had a huge impact on vehicle production. Therefore, he encouraged the principal to give more quota to the country’s automotive industry.

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“Yes, this is not only Indonesia, one world is experiencing scarcity. These chips vary depending on their use. For cars, there are special chips, or the same nature as electronics,” said Nangoi.

“To get an additional supply of chips, we also contacted the principal using the ministry’s hand to persuade the principal to give more chips to Indonesia. Because most of the car production in Indonesia is still combustion engines,” he added.

Taken from the Kemenperin.go.id website, a semiconductor manufacturer that will increase its investment in Indonesia is PT Infineon Technologies Batam.

Through a meeting at the state visit of the President of the Federal Republic of Germany Frank-Walter Steinmeier, Indonesia and Germany agreed to increase investment in the high-tech industry and open up opportunities to develop semiconductor factories in Indonesia so that the industry can play a role in the global chip supply chain.

PT Infineon Technologies Batam, has committed to an investment increase of EUR35.37 million (Rp569.3 billion) for a capacity increase of 65 million per week by 2025, and will increase to EUR83.57 million (Rp1.3 trillion) for a capacity of 150 million per week until 2030.

PT Infineon Technologies Batam is one of the companies engaged in the semiconductor industry, and has invested in Indonesia since 1996. The production capacity of PT Infineon Technologies Batam in 2020 reached 15 million pcs per week and increased to 22 million pcs per week in 2021.

“The minister (Agus Gumiwang) said that there is a semiconductor factory to be built there, and we will discuss it,” said Nangoi.

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(riar/din)

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