May 29, 2020


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Washington in talks with chipmakers about building US foundries – Hardware

The Trump administration is in talks with semiconductor companies about setting up chip factories in the United States, reps from two chipmakers said.

Intel is in discussions with the United States Office of Protection in excess of strengthening domestic resources for microelectronics and related technologies, Intel spokesman William Moss said in an emailed statement.

“Intel is very well positioned to operate with the US governing administration to work a US-owned business foundry and provide a wide selection of safe microelectronics”, the statement extra.

Taiwan Semiconductor Producing Co (TSMC), on the other hand, has been in talks with the US Office of Commerce about setting up a US manufacturing facility but said it has not produced a final determination yet.

“We are actively evaluating all the suited places, which includes in the US, but there is no concrete program yet”, TSMC spokeswoman Nina Kao said in a statement.

Intel CEO Bob Swan wrote a letter to the Office of Protection in late March in which he expressed the company’s willingness to establish a foundry – a term made use of in the sector to reference a chip manufacturing facility – in partnership with the Pentagon.

“This is extra important than at any time, given the uncertainty established by the existing geopolitical environment”, Swan wrote in the letter dated March 30 and viewed by Reuters on Sunday.

It arrives amid expanding diplomatic tensions between the US and China throughout the coronavirus outbreak, with both sides trading barbs in excess of who is to blame for the unfold of the condition immediately after currently currently being included in trade tensions for practically two years.

“We at present believe it is in the greatest curiosity of the United States and of Intel to check out how Intel could work a business US foundry to provide a wide selection of microelectronics,” the letter from the Intel CEO extra.

The Trump administration’s discussions with chipmakers have been noted previously by the Wall Avenue Journal, with the report adding that TSMC also has been chatting with Apple, 1 of its major clients, about setting up a chip manufacturing facility in the United States.

TSMC declined to remark on the talks with the Apple iphone maker.

The Journal experienced also noted that US officers are hunting at helping South Korea’s Samsung Electronics, which has a chip manufacturing facility in Austin, Texas, to grow its agreement-producing functions in the United States.

The US Commerce Office, Samsung and Apple did not react to requests for remark on Sunday.