US Government TSMC to Build Fab in USA

Die Fab 14 von TSMC im Taiwan Science Park in Tainan
The Fab 14 of TSMC at the Taiwan Science Park in Tainan.

The USA urges TSMC to build its own factory for the production of ICs for military use in the USA.

For example, TSMC is currently producing chips for the US F-35 fighter jet, and is supplying American companies such as Apple, Google and Qualcomm as well as Chinese chip manufacturers such as Huawei.

As the Nikkei Asian Review now claims to have found out, the USA is increasing the pressure on TSMC to build a factory in the USA for security reasons. Because chips used for military purposes should also be produced in the USA. The fact that Chinese President Xi Jinping recently did not want to rule out the possibility of using force to unite Taiwan with mainland China should help the USA to push TSMC in this direction. TSMC, however, shuns the high manufacturing costs in the USA.

In China, TSMC maintains a factory in Nanjing, among other things to manufacture for Huawei. According to the Nikkei Asian Review, TSMC generates 10 percent of its total sales with Huawei, and Chinese companies account for 20 percent of TSMC's total sales. TSMC generates 60 percent of its total sales with US companies. Recently, TSMC announced that the company is able to comply with Pentagon security regulations at its Taiwanese plants.