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Semi Conductor Industry in Indonesia

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This thread will be dedicated to news and update about semi conductor industry in Indonesia.
 
Indonesia wants in on chip industry and has some things going for it

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A new type of 300 millimeter wafer with semiconductor chips of German manufacturer Bosch is seen in Dresden, eastern Germany, on May 31, 2021.(AFP/Jens Schluter )


Dzulfiqar Fathur Rahman (The Jakarta Post)
PREMIUM
Jakarta ● Thu, March 17, 2022

Relatively low geopolitical risk has been identified as a competitive advantage that might draw investors to Indonesia as the government seeks a slice of the global semiconductor industry. The bold initiative comes at a time when some countries appear concerned about the world’s heavy reliance on Taiwan amid surging demand for electronics.

President Joko “Jokowi” Widodo said the government planned to develop the ecosystem for the semiconductor industry this year, starting with investment in a polysilicon factory and chip design facility in Central Java.

 
Private owned company


PT. Xirka Silicon Technology XST
is the only and first chipset and electronics design house company in Indonesia. XST is a fabless semiconductor company that creates innovative integrated Circuit (IC) and to provide mass electronic product for a dynamic lifestyle, our mission is to combine high technology expertise, high quality of human resources, and high creativity for excellent value-added products.

From 2005 to 2008, the company started a design house as an outsourcing business venture, serving multinational electronics company in Fukuoka, Japan. XST was established in May, 2008 as a fabless company focusing in WiMax Baseband chipset. In 2012, XST began developing integrated circuit for smart card technology including NFC memory card chip, contact and contacless CPU card chip.

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The founder and owner of the company is Professor Trio Adiono Phd, Bandung Institute of Technology researcher.

 
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Expanding Semiconductor Production, PT Infineon Technologies Batam Acquires Real Estate Owned by PT Unisem
Kompas.com - 19/04/2022, 20:11 WIB

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PT Infineon Technologies Batam acquires real estate owned by PT Unisem. (Doc. PT Infineon Technologies Batam)


KOMPAS.com – PT Infineon Technologies Batam has officially purchased real estate belonging to PT Unisem. Managing Director of PT Infineon Technologies Batam Budi Hartono Amron said that this expansion will double the semiconductor production area of PT Infineon Technologies Batam in Batam, Riau Islands.

"The acquisition will also increase the company's focus in assembling and testing automotive products," Budi said as reported by TribunBatam.id , Friday (15/4/2022). Meanwhile, Infineon Back-end Executive Vice President Dr Alexander Gorski said that the company is committed to investing in sustainable growth and strengthening supply chain resilience ( blockchain ).

In line with Gorski, Executive Vice President and Chief Operating Officer (COO) of Infineon's Automotive Division, Dr. Thomas Kaufmann, assessed that the demand for automotive semiconductors in Batam is increasing.

Therefore, the acquisition allows him to add back-end capacity more quickly. Moreover, the company has targeted the addition of production capacity to begin in 2024. Kaufmann said the massive expansion in Batam is part of Infineon Technologies AG's long-term investment strategy.

In the 2022 fiscal year, the company invested approximately 2.4 billion euros. To note, PT Infineon Technologies Batam is a German company engaged in the semiconductor sector. The company, which has been operating since 1996 in the Batamindo Industrial Park area, is part of the Indonesia-Singapore-Malaysia economic growth triangle. As one of the largest semiconductor companies in Indonesia, currently, PT Infineon Technologies Batam has more than 2,000 employees.

 
Expanding Semiconductor Production, PT Infineon Technologies Batam Acquires Real Estate Owned by PT Unisem
Kompas.com - 19/04/2022, 20:11 WIB

View attachment 864325
PT Infineon Technologies Batam acquires real estate owned by PT Unisem. (Doc. PT Infineon Technologies Batam)


KOMPAS.com – PT Infineon Technologies Batam has officially purchased real estate belonging to PT Unisem. Managing Director of PT Infineon Technologies Batam Budi Hartono Amron said that this expansion will double the semiconductor production area of PT Infineon Technologies Batam in Batam, Riau Islands.

"The acquisition will also increase the company's focus in assembling and testing automotive products," Budi said as reported by TribunBatam.id , Friday (15/4/2022). Meanwhile, Infineon Back-end Executive Vice President Dr Alexander Gorski said that the company is committed to investing in sustainable growth and strengthening supply chain resilience ( blockchain ).

In line with Gorski, Executive Vice President and Chief Operating Officer (COO) of Infineon's Automotive Division, Dr. Thomas Kaufmann, assessed that the demand for automotive semiconductors in Batam is increasing.

Therefore, the acquisition allows him to add back-end capacity more quickly. Moreover, the company has targeted the addition of production capacity to begin in 2024. Kaufmann said the massive expansion in Batam is part of Infineon Technologies AG's long-term investment strategy.

In the 2022 fiscal year, the company invested approximately 2.4 billion euros. To note, PT Infineon Technologies Batam is a German company engaged in the semiconductor sector. The company, which has been operating since 1996 in the Batamindo Industrial Park area, is part of the Indonesia-Singapore-Malaysia economic growth triangle. As one of the largest semiconductor companies in Indonesia, currently, PT Infineon Technologies Batam has more than 2,000 employees.


Batam island is located in Sumatra island where Sumatra island is second biggest economically in Indonesia in term of GDP after Java island.

 

RI Has a Semiconductor Industry Covering an Area of 11 Football Fields, This is the Location​


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Aug. 30, 2022, 11:30 a.m.

Liputan6.com, Jakarta In an effort to accelerate digital transformation, the semiconductor industry plays an essential role and has become the lifeblood.

Along with the development of the industrial era 4.0, the world's need for semiconductor chips also continues to grow with global demand increasing by about three times the needs before the pandemic.

With the rapid development of telecommunications and automotive devices including electric vehicles (electrical vehicles), as well as digitalization in many sectors, it is also increasingly opening up opportunities for the growth of the semiconductor industry.

In the continuation of a working visit in Batam city, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso together with a group of the Coordinating Ministry for Economic Affairs and a number of Editors-in-Chief of the national mass media visited the first semiconductor company in Indonesia, namely PT Infineon Technologies Batam, last Sunday (28/8/2022).

PT Infineon Technologies Batam is an industrial company from Germany engaged in semiconductors. The company, which has absorbed approximately 2,000 workers, has been operating since March 6, 1996 and is a world leader in semiconductor solutions that make life easier, safer, and greener.

Through the vision of We make life easier, safer, and greener, PT Infineon Technologies Batam puts forward solutions for efficient energy management, smart mobility, and safe and smooth communication, as well as connecting the real world and the digital world.

Standing on an area of 83,000 m2 which is equivalent to 11 football fields, PT Infineon Technologies Batam is located in the Batamindo Industrial Park area, Batam, and is part of the Indonesia-Singapore-Malaysia economic growth triangle

 
More detail information about their products

 
US to Invest & Involve Indonesia in Semiconductor Industry Ecosystem



BUSINESS - Yesterday 06.40



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Good news came from Los Angeles, United States. The United States (US) government firmly said that it would disburse investment to Indonesia in supporting the semiconductor industry. Indonesia will be involved in the ecosystem of the super important goods industry that is being hunted by all parties in this world.

The new U.S. commitment was conveyed by Gina Raimondo, U.S. Secretary of Commerce, during a bilateral meeting with Coordinating Minister for the Economy Airlangga Hartarto, Thursday (8/9) LA time.

This bilateral meeting was held on the sidelines of the Indo Pacific Economic Framework (IPEF) Ministerial Meeting at the JW Marriott LA Live Hotel, Los Angeles, which took place September 8-9, 2022.

In this meeting, Coordinating Minister Airlangga was accompanied by Minister of Industry Agus Gumiwang Kartasasmita, Indonesian Ambassador to the U.S. Rosan P Roeslani, Coordinating Minister for Economic Affairs Susiwijono Moegiarso, and Director General of KPAII of the Ministry of Industry Eko SA Cahyanto.

Gina Raimondo's commitment regarding investment in the semiconductor industry is thanks to the support of Indonesia who participated in IPEF. Unmitigated, in participating in IPEF Indonesia follows all pillars consisting of pillars I-IV.

IPEF is an initiative of the United States officially launched by President Joe Biden on May 23, 2022 in Tokyo, Japan.

Pillar I: Trade (Fair & Resilience), Pillar II: Supply Chain (Resilience), Pillar III: Clean Energy, Decarbonization & Infrastructure (Infrastructure, clean energy, and decarbonization), Pillar IV: Taxes and Anti-Corruption. Pillar I will be led by the U.S. Trade Representative (USTR), while II - IV will be led by the US Department of Commerce (DOC).

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Raimondo explained that currently the US government has provided federal funds of USD 50 billion (around Rp 747 trillion) to build a semiconductor industry.

From some of these funds, the U.S. will disburse them for investment in Indonesia to support the semiconductor industry ecosystem. So how much is the investment worth? Raimondo has not elaborated on the details, but he asked for this commitment to be followed up by the technical team between the two countries.

"Raimondo proposed that the two countries form a technical team to discuss it immediately. And in October this year, I was invited here to discuss the tangible results of the technical discussions," said Coordinating Minister Airlangga.

One of the things that Indonesia needs to prepare to support the semiconductor industry is human resources (HR). Raimondo said that the capacity building of human resources in the semiconductor field will be carried out through the Master's Degree in Semiconductor and Microelectronics Engineering at the University of Purdue, which can be collaborated with universities in Indonesia.

Against Raimondo's fairly detailed offer, Coordinating Minister Airlangga welcomed it. Airlangga even offered to prepare an Education SEZ (Special Economic Zone) in Batam, to be in line with the Semi-Conductor Industry that already exists in Batam.

Airlangga emphasized the importance of concrete programs that can be realized (concrete deliverable) to follow up on these commitments. He hopes that this investment commitment will be realized before 2024.

In the semiconductor industry, the U.S. has carried out ecosystem cooperation with other countries, such as Japan, Taiwan, and South Korea.

With the entry of Indonesia into the ecosystem of semiconductor industrial countries, the development of the semiconductor industry in Indonesia will develop rapidly.

Currently, in Indonesia there is already a company from Germany, namely PT Infineon Technologies Batam, which develops semiconductors in Batam.

Another important point of this bilateral meeting, Airlangga said, is the U.S. commitment to invest in the development of the battery industry for electric vehicles (EV batteries) in Indonesia.

"These two industries, both the semiconductor industry and EV batteries, are two industries that the U.S. and Indonesia will be part of the ecosystem," airlangga said.

RI-US Trade Target USD 60 Billion

The bilateral meeting also discussed key developments in the IPEF negotiations and efforts to enhance U.S. cooperation and other investment into Indonesia.

"The bilateral trade volume of the Republic of Indonesia and the US is targeted to reach USD 60 billion, which currently only reaches around USD 37 billion, so there is an opportunity to further increase cooperation between the two countries," said Airlangga.

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At the meeting, Airlangga said that Indonesia has encouraged structural reforms through the omnibus law of the Job Creation Law, Indonesia's strategic position as the G20 Presidency and Chairman of ASEAN in 2023, as well as the need for U.S. support regarding food issues, especially soybean imports (soya bean) from the U.S. which is quite large.

U.S. investment into Indonesia is still very small, where in 2021 it was only USD 2.54 billion or around RP 37.5 trillion, so it needs to be encouraged to invest more U.S. into Indonesia.
Raimondo confirmed the statement, "That is why Indonesia needs to join IPEF and play an active role in every meeting. This is a very good opportunity for Indonesia to increase U.S. trade and investment," Raimondo said.

Regarding the issue of Manpower which is included in Pillar I, Coordinating Minister Airlangga explained about the policies carried out by the Government of Indonesia through the Pre-Employment Card program which is the Government's assistance to improve skills and support for the workforce in order to increase competence and get a job or entrepreneurship.

The Pre-Employment Card Program is a digital end-to-end program and Government to People (G-to-P) program, which has been attended by 11.6 million participants and more than 110 million registrants carried out digitally.

Raimondo was very impressed with the success of the Pre-Employment Card program. "The Government's investment in human resources will greatly help Indonesia's economic growth and future," said Raimondo. He also reiterated his commitment to encouraging major American companies to invest in Indonesia.






 
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US to send trade delegations to Indonesia on semiconductors



Aditya Hadi (The Jakarta Post)

PREMIUM
Jakarta ● Tue, November 14, 2023

The United States is considering Indonesia as a partner to create a global semiconductor value chain, according to a statement from the White House on Monday.

This was laid under an agreement called the US-Indonesia Comprehensive Strategic Partnership, following bilateral talks between US President Joe Biden and President Joko “Jokowi” Widodo on Monday.

The US would begin with a review of Indonesia's current semiconductor ecosystem, regulatory framework, workforce and infrastructure.

 
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