US efforts to slow China's development of chip technology on security grounds
Why it matters
The Biden administration is promising tens of billions of dollars to support construction of US chip foundries and reduce reliance on Asian suppliers, which Washington sees as a security weakness. However, TSMC has estimated chip costs in Arizona at 50% above its flagship production line in Taiwan, but the real level looks closer to double, said Chang. The shift in production could lead to a bifurcation of global semiconductor supply chains, increasing prices and reducing the ubiquity of chips that power the modern world.
What the papers say
The Independent and Reuters
How we got here
TSMC is building an Arizona facility and plans a second for a total investment of $40 billion. The retired founder of TSMC, Morris Chang, supports US efforts to slow China's progress in chip manufacturing and predicted that there would be a "bifurcation" of global semiconductor supply chains. TSMC's talks with the German state of Saxony about building a new factory are at an advanced stage and are now focused on government subsidies to support the investment.
More on these topics
Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company.
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
Taiwan, officially the Republic of China, is a country in East Asia. Neighbouring countries include the People's Republic of China to the northwest, Japan to the northeast, and the Philippines to the south.
China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.