[6/4] The US Reshoring of Semiconductors and the Crisis of Autonomous Driving: The Future Reflected by GF Investment and the Tesla FSD Accident
In recent years, geopolitical risks in the semiconductor industry and safety issues regarding autonomous driving technology have attracted significant global attention. In early 2025, semiconductor giant GlobalFoundries (hereinafter referred to as GF) announced a $16 billion investment plan within the United States, embarking on a path to strengthen domestic manufacturing. Meanwhile, footage of a fatal accident caused by a vehicle equipped with Tesla's "Full Self-Driving" (FSD) feature in November 2023 was released, once again making the reliability of autonomous driving technology and the nature of its regulation a topic of debate. This article focuses on these two news items, providing a detailed explanation of (1) GF's US investment plan, (2) the accident involving Tesla FSD and regulatory trends, and (3) the underlying US-China relations and supply chain issues, while considering the challenges and prospects facing the semiconductor and automotive industries.
1. GlobalFoundries' Expansion of US Investment
The semiconductor industry is the foundation of the modern economy, and as competition among developed nations intensifies, GF has launched a plan to strengthen its production capacity within the United States. According to Bloomberg Technology, GF has announced that it will invest $16 billion to produce advanced process technologies through investments in existing facilities in New York and Vermont. This is symbolized by the comment from the company's CEO, Tim Arthur, who stated, "Semiconductors are becoming necessary in every aspect of daily life, and an integrated system from domestic design to manufacturing is required."
1-1. Plan Overview
GF's investment plan primarily focuses on the existing Greensboro plant in New York and the Vermont plant in Vermont, where it will develop new production lines and research and development (R&D) facilities. Specifically, the New York site will expand its state-of-the-art processes, while the Vermont site will add fabs to develop advanced technologies. Bloomberg's article states, "The company expects to invest over $1.4 billion annually and will expand in stages according to customer demand," indicating a stance of flexibly deploying funds in response to inquiries from client companies.
1-2. Investment Background and Geopolitical Factors
In recent years, the struggle for technological hegemony between the US and China has had a major impact on the semiconductor industry. The US government is supporting the revival of domestic manufacturing through the "Chips Act" and is also strengthening export controls on China. On the other hand, China is showing a confrontational stance by controlling the supply of critical resources such as rare earths and is hinting at export restrictions on rare metals. Bloomberg reported, "China controls 70% of the global rare earth market, and US companies cannot manufacture without it." Against this backdrop, GF is under pressure to strengthen its domestic US supply chain and reduce its dependence on China.
1-3. Impact and Expectations for the Semiconductor Industry
GF's large-scale investment is not limited to mere factory expansion but has the potential to bring ripple effects to the entire US ecosystem. First, it is expected to create thousands of jobs in the regional economy, leading to the cultivation of new technical talent and the attraction of related companies. Furthermore, client companies include Qualcomm and Apple, and demand for processors for artificial intelligence (AI) and chips for automobiles is surging. "GF will accelerate investment in response to customer needs and meet the demands of the AI era," the company's CEO also commented. While this is expected to further enhance the US's advanced technology competitiveness, it is inevitable that investment competition with rivals will intensify.
2. The Accident Involving Tesla FSD and Regulatory Trends
Tesla, which aims to commercialize autonomous driving technology, was back in the spotlight following a fatal traffic accident that occurred in November 2023. In the accident, a Tesla Model Y, while using the "Full Self-Driving" (FSD) feature, failed to detect a 72-year-old pedestrian who was providing traffic guidance on the side of the road, resulting in a collision that killed the pedestrian at the scene. Dashcam footage of this accident was released by Bloomberg News in June 2025, and the footage confirms that "the system failed to recognize the subject in front under low-angle light conditions" and that "although there was human monitoring in the driver's seat, the stop instruction did not function."
2-1. Overview of the Fatal Accident in November 2023
The accident occurred on a main road in the suburbs of Phoenix, Arizona. It is reported that at the time of the accident, the sun was at a low position just after sunset, making the pedestrian in front difficult to see due to backlighting. Bloomberg reported, "Upon reviewing the footage, the system failed to detect the human figure seconds before the collision and struck the pedestrian," suggesting that the FSD recognition algorithm may be vulnerable under certain environmental conditions. Notably, this is the first publicly released footage of an accident involving this feature, and it is also the first case in which Tesla voluntarily released accident footage.
2-2. Significance of the Dashcam Footage Release and Reporting
The released dashcam footage further heightened social interest in the safety of the FSD feature. Bloomberg News reported, "By releasing the footage, it became possible to ensure transparency and verify the issues," which served as an opportunity to question the governance and responsibility of automakers. In fact, triggered by this accident, Tesla is undergoing an FSD safety investigation by the US National Highway Traffic Safety Administration (NHTSA), and it has been reported that "the system's operational history and software algorithms are being verified." To maintain consumer trust, a thorough investigation into the cause of the accident and the presentation of recurrence prevention measures are essential.
2-3. Debate on the Safety of Autonomous Driving Technology
While Tesla's FSD adopts an approach that recognizes surrounding conditions using only cameras, competitors such as Waymo and Cruise have introduced complex sensor systems that also use LiDAR (optical ranging technology). Analysis of the accident footage pointed out that there are cases where the resolution of camera images drops under low sunlight or backlit conditions, making it impossible to detect humans. Among experts, there is a prevailing opinion that "sufficient safety cannot be ensured under extreme light conditions or bad weather without combining LiDAR or radar," and regulatory authorities are also concerned about this point. Furthermore, although Tesla claims that "FSD is merely a driver assistance technology and the driver always bears the duty of monitoring," there is a risk that the gap between consumer understanding and actual operation will further exacerbate safety issues.
3. US-China Relations and the Spillover to the Technology Market
Behind the issues surrounding GF's investment and Tesla's FSD, the struggle for technological hegemony between the US and China is having a major impact. Former President Trump has publicly stated that Chinese President Xi Jinping is "a difficult person to deal with," and tensions between the two countries continue. According to Bloomberg, it is pointed out that "trade agreements reached between the US and China are not being observed, and there is a possibility that export controls and tariffs will rise again."
3-1. The Trump Administration and Confrontation with China
The high tariff policies introduced under the Trump administration placed constraints on the procurement of semiconductor-related products and components from China, forcing US companies to secure alternative suppliers. Bloomberg reported that "a tit-for-tat exchange continues, with China restricting exports of critical materials like rare earths and the US strengthening export controls." As a result, US companies, including GF, are prioritizing "supply chain diversification" and accelerating efforts to explore the construction of production bases and technical partnerships outside of China.
3-2. The Rare Earth Issue and Supply Chains
Rare metals and special chemical substances are essential for semiconductor manufacturing, and China dominates much of this supply. According to Bloomberg, "China accounts for approximately 70% of the global rare earth market, and US companies are rushing to research and develop alternative materials and recycling technologies to reduce their dependence." Additionally, government-led efforts to secure domestic resources are intensifying, with reports stating that "the US Department of Energy is expanding subsidies for rare earth mining to support the construction of a domestic supply network." Unless these measures progress, the stable supply of the semiconductor industry will remain difficult, and there is a risk that the investment effects of GF will be limited.
3-3. Future Risks and Outlook
If US-China relations do not improve, further tariff hikes and export restrictions are expected. In the semiconductor industry, while strengthening research and development and manufacturing systems within the US is an urgent issue, "labor shortages" and the "long recovery period for capital investment" can become factors that hinder corporate plans. Furthermore, in the field of autonomous driving technology, not only Tesla but also Waymo and Cruise are establishing their own safety standards, aiming to gain consumer trust. Moving forward, the key to market growth will be how to achieve "regulatory harmonization" rather than just technological competition. For example, "the federal government may develop guidelines for autonomous driving lab testing and promote technology sharing among companies," which is expected to lead to the healthy development of the entire industry.
In this article, we discussed the background of US-China relations and supply chain issues by focusing on GF's $16 billion domestic investment plan and the fatal 2023 accident involving Tesla FSD. While GF's investment will contribute significantly to strengthening domestic production capacity and improving technological competitiveness in the US, it faces challenges in terms of geopolitical risks and the procurement of human resources and capital. Regarding autonomous driving technology, released dashcam footage has cast serious doubt on the safety of FSD, and investigations by regulatory authorities are underway. Going forward, it is essential to balance technological innovation with regulatory harmonization, and the entire industry must continue efforts that prioritize safety while increasing transparency.
