CHIPS Act Won’t Help U.S. Chip Manufacturing, According to Former TSMC Spokesperson

An ex-spokesperson for the Taiwan Semiconductor Manufacturing Company (TSMC) has expressed her belief that the recent multi-billion-dollar semiconductor financing measure (CHIPS ACT) that was approved by the US Congress earlier this week won’t be enough to significantly alter the semiconductor sector.

The spokeswoman’s remarks were made during a Twitter chat hosted by Bloomberg Technology. She said that the bill’s size and TSMC’s capital expenditure hardly touch the surface of setting up large-scale facilities. The interview took place earlier this week, during which officials from Bloomberg Technology spoke with Ms. Elizabeth Sun, who worked with Dr. Morris Chang, the company’s creator, at TSMC for 16 years, from 2003 to 2019.

https://twitter.com/technology/status/1552112285149192192

She was asked which areas of the U.S., E.U., Japan, and China have the highest potential for creating a robust semiconductor sector. Ms. Sun responded by stating the following:

Well, this is a very complicated issue as we have already said, the semiconductor industry has been a global industry with a well established global supply chain. Now over sudden well. Say all of a sudden in the last few years, all these regions and countries are all talking about competition and building out its own complete supply chain domestically. Well. I don’t really know if it is really worthwhile. So is that really needed? Is that really possible? And even if it is possible, how long will it take? So I think we should spend resources to help smooth out the kinks in the supply chain. Instead of, you know, throwing out billions and billions of money building out all these separate and fragmented manufacturing capacities all over the place, I think the industry should spend resources wisely in researching and developing new materials, design architectures, and new semiconductor applications”

The chipmaking sector is a difficult one to stay continuously profitable according to Elizabeth adding that the record demand following the coronavirus outbreak had obscured this truth on the corporations’ financial sheets. She continued by saying that because the industry is so capital and technologically intensive, it is almost hard for newcomers to catch up to the established firms.

A number of provisions in the CHIPS Act provide government assistance for chip businesses that wish to either establish factories in the United States or institutes for the study and development of novel chipmaking technology, notably for nodes with feature sizes less than three nanometers.

Muhammad Zuhair
Passionate about technology and gaming content, Zuhair focuses on analysing information and then presenting it to the audience.