Pressure from a Taiwanese manufacturer in the “Hongmen Yen” semiconductor industry

The auto chip shortage has spread to other manufacturing industries, leaving TSMC under great pressure at the summit hosted by President Biden.

After the pandemic, the semiconductor industry changed from an important industry in the past to a “key industry”, which also made its technological prowess. TSMC has become an internationally discussed topic.

On April 12, US President Joe Biden convened major technology companies and held an online summit on semiconductor supply chain resilience. A total of 18 CEOs attended, including TSMC Chairman Luu Duc Am (Mark Liu). Besides, there is also the US State Department, Intel Corporation, GlobalFoundries, Micron Technology, NXP, Samsung and some other semiconductor manufacturers.

“The reason I’m here today is to discuss how to strengthen the domestic semiconductor industry and secure the supply chain in the US,” President Biden said at the opening. Industry leaders attending the conference are key figures in sustaining this goal.

Mr. Biden said frankly: “Competitiveness depends on where and how to invest. As a country, we have had a long, bold investment to outperform our global competitors for a long time. We are research and development while production infrastructure has lagged. Honestly, we have to step up our game.

What role does TSMC play in this “Hong Mon Yen” event?

First of all, what this summit will tackle is the shortage of car chips. Since the beginning of this year, the German and Japanese governments have called on TSMC to increase production capacity to feed the precarious auto industry.

Judging from the seat list, the three major US automakers GM General Motors, Ford Ford Motor and Chrysler parent company Stellattis were present, and Mr. Biden was clearly making calls. similarly, especially when GM and Ford just announced plans to cut production last week.

Meanwhile, with NXP, all chip sources produced by the company will be integrated directly into the car and not distributed through third parties. This means even though the US President wants to have a vacancy in the supply chain. NXP’s response is also impossible. In addition, the medical and arms industries are also causing a shortage of chips.

Therefore, besides the main group of car manufacturers, the need for chip related to computer network / communication is also an issue that needs to be addressed at this summit. Specifically, the needs of AT&T, Alphabet (the parent company of Google), Dell and Hewlett-Packard …

In addition, from the list of guest “witnesses” revealed by Reuters, suddenly there are two US companies, one is the world’s largest medical technology company Medtronic Medtronic, the other is a manufacturer of military weapons. the Northrop Grumman. That said, the demand for semiconductors and chips has penetrated deep into sectors, not just in conventional manufacturing.

As the supply chain ran out of space, TSMC’s expanding production capabilities were targeted and the pressure from the US President and key partners present at the conference prompted the Taiwanese chipmaker to demonstrate. attitude.

TSMC promises production capacity in the US will meet Mr. Biden’s expectations

In response to the expectations of the US President, TSMC President Luu Duc Am had to promise: “TSMC is about to build a 5 nanometer process wafer plant in Phoenix, Arizona. This project is one of the largest foreign direct investment projects in the history of the US and the bilateral cooperation will be guaranteed ”.

Accordingly, TSMC’s 5-nanometer plant in Arizona will be started construction this year, and mass production is expected in 2024, with an investment of about 12 billion USD. However, despite being pressed to full capacity, TSMC’s expansion capacity is limited at the moment and it is likely that this is not the last move of the US President.

An industry analyst said that if the US government wants to ensure production capacity, they can limit TSMC’s line to only US industries. However, to ensure the supply of the automobile, computer and network industries as well as some other fields, this is not simple because of the difference in technology. That is something that both TSMC and US manufacturers need to consider.

Phong Vu

The shortage of semiconductors is hurting American industries

The shortage of semiconductors is hurting US industries

Semiconductor chips are an important component of modern electronics and can be found in thousands of products used every day, including cars, computers, smartphones and medical devices …


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