In the vast expanse of the Arizona desert, a new industrial powerhouse is emerging. Taiwan’s TSMC, the world’s leading microchip manufacturer, is constructing a massive facility just north of Phoenix, capital of the state. Drawn by a combination of local and federal subsidies, TSMC’s decision to establish a foothold in the American West highlights the country’s renewed focus on semiconductor production in the wake of the Covid-19 pandemic.
Under President Joe Biden, the United States is prioritizing the revival of its semiconductor industry as a matter of national security. The aim is to reduce dependence on Asian suppliers, particularly China, and establish a more secure domestic supply chain. By attracting TSMC and other major players to the region, Phoenix has started to earn the moniker of “Silicon Desert.” It has become a breeding ground for cutting-edge technologies and a battleground in the global chip war between the US and China.
Currently, the vast majority of semiconductors, 80%, are manufactured in Asia, with Taiwan being the frontrunner for advanced chip production. Considering the ongoing tensions between Taiwan and China, the US Department of Defense is determined to reduce reliance on Taiwan Semiconductor Manufacturing Company for its military technology, such as missiles and fighter planes.
TSMC’s construction site, covering an expansive five square kilometers north of Interstate 17, is a massive endeavor involving 12,000 workers. The company is establishing two state-of-the-art manufacturing plants, known as “fabs,” with Fab 21 specializing in producing chips with a remarkable precision of 4 or 5 nanometers. As the only company, along with Samsung, to have mastered this level of technology, TSMC’s fab is set to become a pivotal player in the industry. It aims to achieve a production capacity of 20,000 silicon wafers per month.
Additionally, TSMC’s presence has attracted 28 subcontractors to set up operations in the surrounding area. Notable examples include Taiwan’s Sunlit Chemical, investing $100 million in a nearby hydrofluoric acid production plant, and the American company Amkor, which is establishing a facility in Peoria to package Apple chips manufactured by the Taiwanese foundry.
In response to TSMC’s expansion in Arizona, its American rival, Intel, is also investing $20 billion to construct a new factory in Chandler, south of Phoenix. Previously a small farming town, Chandler has morphed into a bustling city with a population of 280,000, and Intel proudly stands as its largest employer with 12,000 individuals on its payroll.
As the semiconductor industry continues to evolve, the rise of the “Silicon Desert” underscores the United States’ determination to maintain technological superiority, safeguard national security, and foster economic growth through strategic investments and partnerships in advanced chip manufacturing.
Frequently Asked Questions:
1. What is the significance of TSMC’s construction in the Arizona desert?
TSMC, the leading microchip manufacturer, is building a massive facility in the Arizona desert. This highlights the United States’ renewed focus on semiconductor production and aims to reduce dependence on Asian suppliers, particularly China, and establish a more secure domestic supply chain.
2. Why is the United States prioritizing the revival of its semiconductor industry?
Under President Joe Biden, the United States is prioritizing the revival of its semiconductor industry as a matter of national security. The aim is to reduce reliance on foreign suppliers and establish a more robust and secure domestic semiconductor supply chain.
3. Why is TSMC’s presence in Arizona important?
TSMC’s presence in Arizona signifies the emergence of what is being called “Silicon Desert.” It has attracted other major players in the semiconductor industry and has become a battleground in the global chip war between the US and China.
4. Which country is currently the frontrunner for advanced chip production?
Taiwan is currently the frontrunner for advanced chip production, with TSMC being the leading microchip manufacturer. However, due to ongoing tensions between Taiwan and China, the US Department of Defense aims to reduce reliance on TSMC for military technology.
5. What is TSMC’s construction site in Arizona involving?
TSMC’s construction site in Arizona covers an expansive five square kilometers and involves 12,000 workers. The company is building two state-of-the-art manufacturing plants, known as “fabs,” with Fab 21 specializing in producing chips with a remarkable precision of 4 or 5 nanometers. TSMC aims to achieve a production capacity of 20,000 silicon wafers per month.
6. How has TSMC’s presence attracted other companies to the area?
TSMC’s presence in Arizona has attracted 28 subcontractors to set up operations in the surrounding area. Examples include Taiwan’s Sunlit Chemical, which is investing $100 million in a nearby hydrofluoric acid production plant, and the American company Amkor, which is establishing a facility to package chips manufactured by TSMC.
7. How is Intel responding to TSMC’s expansion in Arizona?
Intel, TSMC’s American rival, is also investing $20 billion to construct a new factory in Chandler, south of Phoenix. This shows the competitive nature of the semiconductor industry and the United States’ determination to maintain technological superiority.
Definitions:
– Microchip: A tiny electronic device made from a semiconductor material that performs various functions in electronic devices.
– Semiconductor: A material with electrical conductivity between that of a conductor and an insulator, used in the production of electronic devices.
– Fabs: Short for semiconductor fabrication facilities, these manufacturing plants specialize in producing microchips.
– Silicon wafers: Thin discs made of silicon, used as the base material for manufacturing microchips.
– Subcontractors: Companies or individuals that are contracted by a larger company to perform specific tasks or services.
Related Links:
– TSMC Official Website
– Intel Official Website
The source of the article is from the blog tvbzorg.com