Trump Administration in Talks With Intel and TSMC to Manufacture Chips in the U.S.

The Trump Administration is in talks with Intel and TSMC to strengthen U.S. production of semiconductors, reports the WSJ.

Trump administration officials are in talks with Intel Corp., the largest American chip maker, and with TSMC, to build factories in the U.S., according to correspondence viewed by The Wall Street Journal and people familiar with the discussions.

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


“Taiwan, in particular, represents a single point-of-failure for most of the United States’ largest, most important technology companies,” said a 2019 Pentagon national security report.

In a letter sent to the Department of Defense on April 28, Intel CEO Bob Swan expressed the company's readiness to build a commercial foundry in partnership with the Pentagon.

“We currently think it is in the best interest of the United States and of Intel to explore how Intel could operate a commercial U.S. foundry to supply a broad range of microelectronics,” the letter said.

Intel's VP of Policy and Technical Affair Greg Slater also said the company is "very serious about this".


“We think it’s a good opportunity,” Mr. Slater said. “The timing is better and the demand for this is greater than it has been in the past, even from the commercial side.”

Another source told the WSJ that TSMC officials have been talking to officials at the Commerce and Defense departments, as well as to Apple, one of its largest customers, about building a factory in the United States.

“We are actively evaluating all the suitable locations, including in the U.S., but there is no concrete plan yet,” the company said in a statement.

TSMC manufacturers Apple A-series chips found in popular devices including the iPhone and iPad.

More details in the full report linked below...

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