Despite the campaign rhetoric of President Donald Trump, who was elected on Tuesday, it is not expected that the poles of power in global semiconductor production will be significantly rearranged anytime soon. At least this is indicated by the fact that the world’s largest contract chip maker, TSMC, continues to insist on completing the expansion of its manufacturing complex in Arizona, where chips for Apple, Qualcomm and Nvidia, among others, will be made.
During his campaign, as usual, Trump reserved some unsolicited words for the Asian company. As a presidential candidate in the summer, in an interview with Bloomberg, he talked about, among other things, that Taiwan did not give anything to the USA, on the contrary, it took away 100% of the chip production from the country, so in fact it should pay defense money for the fact that the USA is a possible Chinese protect him during aggression.
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TSMC is one of the foreign chip manufacturers that also have factories in America, expanding them and bringing production in-house is at the same time in the interest of the current American government – the weaknesses of the centralized supply chain were drawn attention to by the global chip shortage during the coronavirus epidemic, which it caused severe loss of billions of dollars to industry players and thus indirectly to the American economy as well.
Based on the CHIPS and Science Act, a law with a $53 billion support fund created by the Biden administration, TSMC will also be able to receive state subsidies for the construction of fabs in Arizona. So far, the Taiwanese party has received 6.6 billion dollars from the framework, which it will use for the investment worth about 65 billion dollars.
Although Trump repeatedly criticized the above legislation during his campaign, calling the subsidy framework excessive, according to political experts speaking to CNBC, it is unlikely that he will not freeze the support after his inauguration, as this would favor China, which cherishes plans for a great power in semiconductor production.
Source: www.hwsw.hu