HomeNewsBeritaBusinessLifestyleOpinionWorldSportsPropertyEducationCarzillaGalleryVideosAccelerator

Amid tensions with China, Washington to entice chipmakers to build US factories

-

Both sides blaming each other for spreading virus after being involved in trade tension for almost two years.

0
Shares
Total Views: 1
Free Malaysia Today
Intel is one of the companies in talks with the US to build a foundry in the US. (Reuters pic)

WASHINGTON:
The Trump administration is in talks with semiconductor companies about building chip factories in the US, representatives from two chipmakers said on Sunday.

Intel Corp is in discussions with the US Department of Defence over improving domestic sources for microelectronics and related technology, Intel spokesman William Moss said in an emailed statement.

“Intel is well positioned to work with the US government to operate a US-owned commercial foundry and supply a broad range of secure microelectronics”, the statement added.

Taiwan Semiconductor Manufacturing Co (TSMC), on the other hand, has been in talks with the US Department of Commerce about building a US factory but said it has not made a final decision yet.

“We are actively evaluating all the suitable locations, including in the US, but there is no concrete plan yet”, TSMC spokeswoman Nina Kao said in a statement.

Intel Chief Executive Bob Swan wrote a letter to the Department of Defence in late March in which he expressed the company’s willingness to build a foundry – a term used in the industry to reference a chip factory – in partnership with the Pentagon.

“This is more important than ever, given the uncertainty created by the current geopolitical environment”, Swan wrote in the letter dated March 30 and seen by Reuters on Sunday.

It comes amid increasing diplomatic tensions between the US and China during the coronavirus outbreak, with both sides trading barbs over who is to blame for the spread of the disease after already being involved in trade tensions for almost two years.

“We currently think it is in the best interest of the US and of Intel to explore how Intel could operate a commercial US foundry to supply a broad range of microelectronics,” the letter from the Intel CEO added.

The Trump administration’s discussions with chipmakers were reported earlier by the Wall Street Journal, with the report adding that TSMC also has been talking with Apple Inc, one of its largest customers, about building a chip factory in the US.

TSMC declined to comment on the talks with the iPhone maker.

The Journal had also reported that US officials are looking at helping South Korea’s Samsung Electronics Co, which has a chip factory in Austin, Texas, to expand its contract-manufacturing operations in the US.

The US Commerce Department, Samsung and Apple did not respond to requests for comment on Sunday.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.