U.S. chip investment continues to mitigate risk.

The US Commerce Secretary, Gina Raimondo, has raised concerns about the potential economic impact of China’s invasion of Taiwan and the seizure of Taiwan Semiconductor Manufacturing Corporation (TSMC). Raimondo emphasized the US’s dependence on TSMC, which produces 92% of its leading-edge semiconductor chips.

The US government has announced a $6.6 billion subsidy and $5 billion in low-interest loans for TSMC’s American operations, including a $65 billion investment by TSMC. The company plans to build three fabs in Arizona, with the first beginning operations in 2025, the second in 2028, and the third before 2030.

Several years ago, a U.S. security publication claimed that the United States would have to destroy TSMC fabs if Taiwan is seized by China, as the country cannot allow the People’s Republic to have access to some of the best semiconductor production capabilities in the world due to national security concerns. Taiwan has vowed to defend the fabs from the US in case of a war with China.

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Credit: tom’s HARDWARE