White House urges TSMC, Intel to grow US-based chip production

The White House is in talks with major chip producers Intel and TSMC to try to get more processor output in the United States, a move that could eventually lead to the production of A-series chips Apple in the country.

The Trump administration is keen to start the development of new chip foundries in the United States to reduce the dependence of facilities in Asia on critical technologies, according to a report. The potential for disruption in the supply chain, as evidenced by the problems created by the coronavirus pandemic, prompted officials to try to convince companies to relocate certain manufacturing sectors to the United States.

Administration officials are in talks with Intel and TSMC, a correspondence seen by the Wall Street Journal, on the construction of new facilities in the United States. While Intel owns part of the chip production in the United States, discussions are focused on expanding the company’s U.S. production, while TSMC would build its first chip factory.

Intel’s vice president of policy and technical affairs, Greg Slater, is quoted as saying Intel was “very serious about this,” with his plan to create an advanced chip factory designed to be secure. government, as well as other clients. “We think this is a good opportunity,” said Slater, “the timing is better and the demand is higher than in the past, even on the commercial side.”

TSMC said he was in talks with defense and trade officials, along with a major Apple customer, over the possibility of building a factory in the United States. Although it has goals similar to those of Intel for the production of government and military chips, the inclusion of Apple apparently suggests somewhere on the line TSMC thinks that the manufacturer of iPhone could want to use its regional installations.

“We are actively evaluating all relevant sites, including the United States, but there is no concrete plan yet,” said TSMC of the new facilities.

The US government previously lobbied TSMC to create a facility in the country, particularly for sensitive components used by the military, such as fighter jets and satellites. In January, TSMC attempted to kill speculation about a country, claiming at the time that it had no short-term plans to move production to the United States.

Although better known for producing Apple’s A-series chips, TSMC has a number of customers in the industry, including a number of technology companies based in the United States. He made chips for Qualcomm, Nvidia, Broadcom, AMD and even Intel, so having a U.S.-based facility can allow these other customers to design advanced chips for the U.S. military.

The creation of a TSMC foundry in the United States, as well as talks with Apple on the subject, could be a step towards Apple moving part of its production to the United States. At first glance, this would also help the Trump administration respond to President Donald Trump’s frequent requests for American companies to bring more manufactured goods into the country, rather than relocating them to China and other major production centers. .

Even so, a TSMC foundry based in the United States would not immediately allow Apple to manufacture iPhones in the United States. Apple would either have to make significant changes to its existing, well-established supply chains to move production from Asia to the United States, or create new domestically produced products using an entirely separate supply chain. the one she’s currently using. process.

While the report focuses on Intel and TSMC, there is also talk of Samsung, which has a chip factory in Austin, Texas. A source says some officials want to help Samsung expand its current contract manufacturing operations to create more advanced chips, again for potential government use.

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