Trump administration and chipmakers in talks about US factories

The goal is to end reliance on Asia-based chipmaking factories

The Trump administration and semiconductor companies are working toward the development of new chip factories in the US, according to the Wall Street Journal.

Tech companies in the U.S. and the U.S. government have been working to reduce the country’s reliance on Asia-based chip factories for years. This has been underscored by various national security concerns, the current US-China tariff war and the coronavirus pandemic, which has put a stranglehold on supply chains worldwide.

Trump administration officials are reportedly in talks with Intel, the largest chipmaker in the U.S. and Taiwan Semiconductor Manufacturing Company (TSMC) to build factories in the US.

According to those familiar with the matter, Intel’s plans would include operating a plant that could securely provide advanced chips for the government and private customers.

The WSJ reported that TSMC is also in talks with officials at the Commerce and Defense departments and Apple, one of the company’s largest customers. TSMC shared in a statement to WSJ, “We are actively evaluating all the suitable locations, including in the US, but there is no concrete plan yet.”

U.S. officials have reportedly shown interest in assisting Samsung in its chip factory endeavors too. The company operates a chip factory in Austin, Texas and has goals of expanding its contract-manufacturing operations in the US.

Intel CEO, Bob Swan, recently penned a letter to the Defense Department, telling it the company is willing to build a commercial foundry in partnership with the Pentagon “given the uncertainty created by the current geopolitical situation.”

“As the largest US-owned manufacturer of semiconductors, Intel spends more than $13B each year on research and development to continue a trajectory of innovation that will provide the foundation for solutions to address our national challenges ahead. We currently think it is in the best interest of the United States and of Intel to explore how Intel could operate a commercial U.S. foundry to supply a broad range of microelectronics,” Swan stated in his letter.

Talks related to the development of chip factories in the U.S. have been underway for some time but have since gained momentum due to Asia’s fragile supply chain amid the coronavirus pandemic. Chipmakers also see this as an opportunity to generate funding for an industry that’s increasingly becoming a national security priority.

A source familiar to the topic told WSJ the Semiconductor Industry Association is conducting a study related to domestic chip production. Additional studies are also underway at the Pentagon and the State and Commerce departments.

Featured Resources

The complete guide to changing your phone system provider

Optimise your phone system for better business results

Download now

Simplify cluster security at scale

Centralised secrets management across hybrid, multi-cloud environments

Download now

The endpoint as a key element of your security infrastructure

Threats to endpoints in a world of remote working

Download now

2021 state of IT asset management report

The role of IT asset management for maximising technology investments

Download now

Recommended

Samsung Galaxy S21 may drop charger and earphones
Mobile Phones

Samsung Galaxy S21 may drop charger and earphones

29 Oct 2020
Samsung Galaxy M31 review: Best-in-class battery life
Google Android

Samsung Galaxy M31 review: Best-in-class battery life

29 Oct 2020
Lee Kun-hee, the man who saved Samsung, dies at 78
Business

Lee Kun-hee, the man who saved Samsung, dies at 78

26 Oct 2020
Samsung Galaxy Tab S7+ review: A capable iPad alternative
tablets

Samsung Galaxy Tab S7+ review: A capable iPad alternative

21 Oct 2020

Most Popular

Do smart devices make us less intelligent?
artificial intelligence (AI)

Do smart devices make us less intelligent?

19 Oct 2020
Best MDM solutions 2020
mobile device management (MDM)

Best MDM solutions 2020

21 Oct 2020
Weekly threat roundup: Chrome, Citrix and WordPress
Security

Weekly threat roundup: Chrome, Citrix and WordPress

23 Oct 2020