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Taiwanese chipmaker TSMC brings production in the United States

North America / Asia
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the administration of President Donald trump managed to poach one of the largest Asian manufacturers of semiconductors in the United States.

Taiwanese chipmaker TSMC brings production in the United States

Taiwan semiconductor manufacturing company (TSMC), has announced plans to build a plant for the production of semiconductors in Arizona. TSMC announced that the us factory will create more than 1,600 high-tech jobs. It is expected that chip manufacturing will start in 2024. The company will invest in the construction and commissioning of production process 5 nm (the most advanced at the moment) 12 billion dollars in the period from 2021 to 2029.

This deal is a great victory for trump administration, which has long sounded the alarm about the function of the semiconductor industry from manufacturers and chip production in Asia, calling addiction a threat to national security.

Secretary of state Mike Pompeo wrote that the deal with TSMC "supports the national security of the United States at a time when China is trying to dominate in advanced technologies and control critical industries".

TSMC is the third largest chip maker in the world after Intel and South Korea's Samsung. The Taiwanese company produces advanced semiconductors for many of the world's leading technology companies such as Apple, Huawei, Qualcomm and Nvidia.

the Main part of the TSMC chip production is done at its factory in Hsinchu city, about 50 miles South of Taipei. She currently manages a small company in Washington and design centers in Texas and California. The plant in Arizona will be the second and largest production center of TSMC in the United States.

the Decision of the Taiwanese manufacturer will be a painful blow to China's ambitions in the field of technology. Analysts Crispidea Research note that TSMC may lose your business with Huawei because of the limitations of the United States. According to analysts at Jefferies, Huawei today "urgent transfer its orders" with TSMC Shanghai factory the chipmaker SMIC.

currently, according to Martin Chorzempa fellow of the Peterson Institute for international Economics, the share of the United States accounted for about 13% of total semiconductor production in the world, about the same as it was in 2015. At the same time, the share of China accounted for about 8% of world capacity in 2015 and today - about 12%.

the Increase in domestic production of semiconductors can help US to stay ahead of China and other leading countries.

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