TAIWAN CHIP’S DOMINANCE
Taiwan’s dominant position as a maker of chips used in technology from cellphones and cars to fighter jets has sparked concerns of over-reliance on the island, especially as China ramps up pressure to assert its sovereignty claims.
China claims Taiwan as its territory, but the democratically elected government in Taipei rejects Beijing’s sovereignty claims.
Under Biden, the Commerce Department convinced all five leading-edge semiconductor firms to locate factories in the US as part of the program to address national security risks from imported chips.
Trump’s Commerce Secretary Howard Lutnick told lawmakers last month that the program was “an excellent down payment” to rebuild the sector, but he has declined to commit grants that have already been approved by the department, saying he wanted to “read them and analyze them and understand them.”
A TSMC spokesperson said last month the company had received US$1.5 billion in CHIPS Act money before the new administration came in as per the milestone terms of its agreement.
TSMC last year agreed to produce the world’s most advanced 2-nanometer technology at its second Arizona factory, expected to begin production in 2028. TSMC also agreed to use its most advanced chip manufacturing technology called “A16” in Arizona.
TSMC has already begun producing advanced four-nanometer chips for US customers in Arizona.
The TSMC award included up to US$5 billion in low-cost government loans.
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