Major Taiwanese newspaper, China Times, recently reported that the Taiwanese chip maker TSMC officially responded to the question of whether it has a plan to invest in new manufacturing capabilities in the U.S. TSMC is the world’s top chip maker with 7 nano-meter manufacturing technology. It receives orders from leading companies such as Apple and Huawei and holds a massive global market share. TSMC also makes chips which the U.S. military uses in high volume. The news triggered a number of reports that TSMC is under heavy pressure from the U.S. Department of Defense to make chips in the United States, citing national security concerns. TSMC clarified that it has no immediate plan to open new factories in the States, but the company is continuously looking into this option. TSMC did admit that it is producing military chips. The primary challenge for manufacturing in the U.S. is cost. The company hinted that it would need a substantial subsidy. However, the new announcement also indicated that, to solve the national security issues that some customers have, the company is devoted to developing traceable chips.
Source: China Times, October 31, 2019