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Washington in talks with chipmakers to build factories in U.S.

Washington in talks with chipmakers to build factories in U.S.
Washington in talks with chipmakers to build factories in U.S.

The U.S. government is contemplating building chip factories in the U.S. as reports suggest Trump administration’s discourse with semiconductor companies.

Taiwan Semiconductor Manufacturing Co (TSMC) is eyeing to build a U.S. factory and has been in talks with the U.S. Department of Commerce; however, the company is yet to make the final decision.

Nina Kao, spokeswoman of TSMC was quoted stating their commitment to build the factory as they are assessing all the suitable locations in the U.S. However, she asserted that a solid plan is yet to take place.

Intel Corp. is also in talks with the United States Department of Defense to enhance domestic sources for microelectronics and other technology, claim reports.

William Moss, Intel spokesman, stressed that the company is gearing to team up with the U.S. government to function in a commercial foundry owned by the U.S. companies and supply a slew of secure microelectronics.

Bob Swan, Intel Chief Executive, is said to have written a letter to the Department of Defense in March-end, expressing the company’s desire to build a “foundry”—a jargon for a chip factory—joining hands with the Pentagon.

Swan is believed to have zeroed in on the significance of building the chip factory in the wake of unpredictability created by the present geopolitical ambience.

The news comes not before relations between the U.S. and China soured amid the blame-game pertaining to the spread of COVID-19. It is worth noting that the trade war between these two countries have been continuing for almost two years.

The Intel CEO is reported to have mentioned in the letter that it is in the “best interest” of the U.S. and of Intel to assess the way the company could function a commercial foundry in the U.S. to supply a myriad of microelectronics.

Source credit:

https://in.reuters.com/article/usa-tech-trump/washington-in-talks-with-chipmakers-about-building-u-s-factories-idINKBN22M0CY

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