Why TSMC Is Building Chip Factories in Japan, Germany and the U.S. | WSJ

Nvidia’s H100 chips are crucial to technology, from their use in smartphones to training complex AI chatbots. But Nvidia outsources their production to one company in Taiwan: the Taiwan Semiconductor Manufacturing Company, or TSMC. With China threatening to use force to take Taiwan if necessary, the U.S. is worried about a devastating impact on TSMC, which is at the heart of the AI revolution.

WSJ looks at what the U.S. is doing to secure the semiconductor chips supply chain before it’s too late.

Chapters:
0:00 The U.S.’s chip situation
1:15 TSMC’s power
1:51 The “Silicon Shield”
3:00 U.S. national security concerns
4:38 U.S. de-risking chips supply chain
5:40 Takeaways

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36 Comments

  1. And all chips manufacturers are reliant on 1 company in the Netherlands.
    ASML.
    Are the only company that has the technology and knowledge to build the machines who produces the smallest chips in the world!

  2. Why won't the UAE countries jump in on this. They seem to have a lot of money to waste on skyscrapers

  3. Because Taiwan is slipping out of the hands of the USA so USA is trying to shift the technology to the countries of their influence.

  4. They have billions of dollars for WAR but when it comes to building chip plants outside of Taiwan, all of a sudden, nobody knows where the money is going to come from. Man, this is crazy.

  5. Why? basically the foreign fabs are the permits required to continue selling to those self-protecting regions. Now the foreign govs are subsidizing those fabs heavily and god knows how cost-efficient a business can be under heavy subsidies.

  6. Technopus so like the powder keg is East Asian white collar for bombs in Cambodia in the iterations of web Pokémon. So like yeah the casual forever war.

  7. Well, all war games and simulations point total Chinese victory if launching an invasion , and the US has confirmed that they would rather bomb tsmc to bits rather than let it be captured, so they are just hedging their bets.

  8. Morris Chang foolishly did what Biden asked him to do. . . Big mistake. It's already begun to hurt TSMC. And now, these adolescents in suits are really going off the deep end. Pathetic.

  9. The first TSMC Fab in Phoenix is now operational and will start mass production 6-8 mos. The second fab is 50% complete and both Fab 2 and 3 will, according to TSMC CEO, be twins with Taiwan producing 2 and 1 NM chips. I would expect the 3 additional fabs (TSMC has the land) to start construction sooner than later. In the meantime, NXP has added a new Fab in Phoenix in addition to Microchip and Onsemi Fabs. Intel is 1 year away from opening two new Fabs which will solidify Phoenix (Chandler) as the largest manufacturing facility for Intel. With the addition of the Texas Instruments expansions in Texas and Utah, Intel expansions in Ohio, New Mexico and Oregon, along with Global Foundries expansion in New York state, Samsung in Texas, Wolfspeed in North Carolina, Micron in Idaho and New York and SK Hynix in Indiana (along with packaging giant Amkor's new Phoenix facility) the United States will not only lead the world in semiconductor equipment and design but shear capacity.

  10. Easy answer… Contrary to sound business practice they are being forced to because of politics

  11. BECAUSE TSMC FORCED BY USA TO MOVE AWAY TAIWAN, USA AFRAID IF TAIWAN CONQUER BY CHINA, TSMC WILL BELONG TO CHINA N USA WILL LOOSE YO CHINA IN CHIPS INDUSTRIES.

  12. Taiwan would be foolish to not have Taiwan be the centre of advanced chip making. Without it, they lose support from their allies

  13. TSMC is not building anything outside of Taiwan. Germany, Japan and US are building foundries (with tax money) for TSMC.

  14. They staged the drill after Nancy Pelocy's political visit to Taiwan. USA can't innovate anything but wants to destroy the innovations of others. An incompetent but pariah state.

  15. A thief will always other people as thieves. China never fought a war in the past 45 years while the US fought many wars and dropped 100 bombs everyday, killing at least 10 million people (Brown University study)

  16. Kind of like preparing for an oncoming War so that your eggs are not in one basket and can still continue the effort.
    Just saying my personal opinion.