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The White House asks TSMC and Intel to move chip production in the United States

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Published on May 11, 2020

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The White House asks TSMC and Intel to move chip production in the United States

The administration Trump is eager to start the development of new foundries and chip in the United States, to reduce the dependence of the structures in Asia for the technology, says a report.

The pandemic coronavirus has stressed the importance of local production. The inability to produce silicon in times of crisis may disadvantage seriously the United States. Officials are particularly concerned about the dependence on Taiwan, an island that China claims as its own.

Administration officials are discussing with Intel and TSMC on the construction of new facilities in the United States. Even if Intel produces already some chips in the United States, the talks will focus on the expansion of american production for the company, while TSMC will build its first chip factory.

As reported by Greg Slater, vice-president responsible for political affairs and policy of Intel, the chip maker is “very serious about it“, with his plan that involves the creation of a system for advanced chips made in a way safe for government use, as well as for some other customers. “We think this is a good opportunity,“ said Slater, “the times are better and the demand for this is greater than it has been in the past, even from the commercial point of view“.

With regard to TSMC instead, the chip maker has discussed with officials of the departments of trade and defence, together with its main client Apple, on the construction of a factory in the United States. Heats if you would have objectives similar to those of Intel for chip production, government and military, the inclusion of Apple would seem to suggest that the iPhone maker may want to use the new regional structure.

“We are considering actively all the appropriate places, even in the United States, but there is not yet a concrete plan,” reads a statement TSMC about the new facilities.

The creation of a foundry TSMC in the United States, as well as the talks with Apple on the topic, could represent a step forward towards the transfer of part of its production in the United States. With regard to the nominal value, it would also help the administration Trump to satisfy the frequent requests of the president, Donald Trump for u.s. companies to bring more production in the country, rather than transfer it in China and in other important centers of production.

However, a foundry, TSMC, based in the United states would not immediately Apple to produce iPhone in the United States. The Colossus of Cupertino is expected to make substantial changes to the supply chains of existing and consolidated to move production from Asia to the United States, or create new products made within the country, using a chain of supply that is completely separate from the one currently in use.

Although the report focused on Intel and TSMC, there is also talk of Samsung, which has a chip factory in Austin, Texas. A source said that some officials are eager to help Samsung expand its current manufacturing operations to contract to create the chip the most advanced, always for potential use by the government.

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