The White House is in talks with chipmakers Intel and TSMC about building chip factories in the United States, the Wall Street Journal reports. The country wants to become less dependent on factories in Asia to produce chips. Having its own factories would be an essential step in that direction.
For some time now, there has been tension between China and the United States because of a trade war between the two nations. Besides, the U.S. accuses Chinese telecom manufacturer Huawei of spying for the Chinese government. Not only are these tensions causing problems, but the coronavirus pandemic is also causing logistical issues for companies around the world and thus also for supplying chips to American companies.
In a letter read by the Wall Street Journal, Intel-CEO Bob Swan wrote to the Defense Department that the company is willing to build a commercial factory in the U.S. in cooperation with the Pentagon. The reason for this is “the current uncertain geopolitical situation”.
According to sources in the newspaper, the Defense Department is also in talks with Samsung to expand its production in the US. Intel, Samsung and TSMC are the three manufacturers that can currently make the best chips of 10-nanometer or less.