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Washington agrees with chip makers to build factories

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Washington agrees with chip makers to build factories

The Trump administration is in talks with semiconductor manufacturers to build microcircuit factories in the United States, two market players said Sunday..

Intel Representative William Moss said Intel Corp is in talks with the US Department of Defense to improve internal sourcing for microelectronics and related technologies.

«Intel is well placed to partner with the US government to operate a US-owned commercial foundry and supply a wide range of safe microelectronics», – said in a statement.

The Taiwanese semiconductor company Taiwan Semiconductor Manufacturing Co (TSMC), in turn, is in talks with the US Department of Commerce to build a plant in the US, but says it has not yet made a final decision..

«We are actively evaluating all suitable locations, including the USA, but there is no specific plan yet», – said a spokeswoman for TSMC Nina Cao.

At the end of March, the head of Intel Bob swan wrote a letter to the U.S. Department of Defense expressing the company‘s willingness to build a foundry – the industry term for a chip factory – in partnership with the Pentagon.

«This is more important than ever given the uncertainty created by the current geopolitical environment.», – wrote Swan in a letter dated March 30 received by Reuters on Sunday.

This comes amid escalating diplomatic tensions between the United States and China during the coronavirus outbreak, as the two sides swap accusations of who is to blame for the spread of the disease, after trade tensions between the countries have existed for nearly two years..

Washington agrees with chip makers to build factories

«We currently believe that it is in the interests of the United States and Intel to explore how Intel could operate a commercial foundry in the United States to supply a wide range of microelectronics.», – Intel CEO said in a letter.

About the negotiations of the administration Trump The Wall Street Journal previously reported with chip makers that TSMC is also in talks with Apple Inc, one of its largest customers, to build a chip factory in the United States..

TSMC declined to comment on talks with iPhone maker.

The Wall Street Journal also reported that US officials are trying to help South Korean Samsung Electronics Co, which has a chip factory in Austin, Texas, expand its contract manufacturing facilities in the United States. A Samsung spokeswoman in Seoul declined to comment on Monday.

U.S. Department of Commerce and Apple did not respond to requests for comment on Sunday.