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US Pressurizes TSMC to Halt Foundry Expansion Plans in Shanghai, China

According to the latest reports, the United States is pressurizing TSMC to reconsider its foundry expansion plans in Shanghai, China. This is despite the fact that the Taiwanese foundry has already announced the construction of advanced facilities in Arizona by 2023 to please US authorities. The project has been granted massive funding of over 15 million USD from TSMC and is expected to provide plenty of job opportunities to the locals, with a production capacity of 20,000 wafers per month.

It’s unclear whether the pushback is coming from the US government or the foundry’s US-based customers, but it’s unlikely that TSMC will change its decision. The reasons being cheaper infrastructure and labor costs in China, and an already established supply chain which is something TSMC doesn’t have in the US.

Over the last few months, the trade war between the US and China has somewhat de-escalated, but the race to dominating the semiconductor industry and self-reliance is still far from over. Most manufacturing facilities are presently based out of Taiwan and China, with TSMC being the premier foundry.

The US concerns aren’t unfounded either. The relations between Taiwan and China have continued to get worse over the last few years, and in the case of an invasion/war, the entire US chipmaking sector will be put at risk.

Source: DT (Via)

Areej

Computer Engineering dropout (3 years), writer, journalist, and amateur poet. I started my first technology blog, Techquila while in college to address my hardware passion. Although largely successful, it was a classic example of too many people trying out multiple different things but getting nothing done. Left in late 2019 and been working on Hardware Times ever since.

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