US is Luring TSMC into Constructing More US-Based Fabs, Chinese Publication Reports

The Taiwan Semiconductor Manufacturing Company (TSMC) is pouring billions of dollars into its US operations. The US economy will undoubtedly profit from it, but China is unhappy about it. The American government is being accused of luring TSMC into constructing fabs in the US, according to one of the Asian country’s tabloids, which also asserts that the US is taking technology created in “our Taiwan region.” 

According to the South China Morning Post, TSMC’s investment in its Arizona factory was criticized as “a dark turn” in the global semiconductor sector in an article in the Chinese nationalist newspaper Global Times.

The most cutting-edge chips will be produced in TSMC’s Arizona facility, which will have an improved 4nm fab and a 3nm fab. The Global Times asserts that TSMC’s choice to invest in this cutting-edge technology in the US demonstrates that the government of that country deceived the business and that Washington was stealing the most recent technology from “our Taiwan region,” a reference to China’s assertion of sovereignty over the island. 

Source: Professional Review

Given that the Global Times is connected to the People’s Daily, the official publication of the Chinese Communist Party Central Committee, Beijing is very sure to have given the article its approval. Contrary to the CHIPS Act, which it has consistently criticized as discriminatory, the Chinese government has not made any formal statements against TSMC’s Arizona facilities. 

“We must ring the alarm bell louder […] the US may pressure chip makers in other countries as it did to TSMC.”

-Global Times 

China has been outspoken in its opposition to the Biden administration’s limitations on its semiconductor sector, which have affected NVIDIA and AMD, involve the export of chipmaking equipment, and have even caused Chinese Americans working in the business to leave or be compelled to renounce their US citizenship if they wish to stay. The US CHIPS Act is a component of larger US attempts to preserve and even increase US technological dominance amid a tech war with China centered on semiconductors and AI.

Recently, TSMC announced that it was increasing its investment in the Arizona fabs by more than three times, from $12 billion to $40 billion. The facility will produce 600,000 wafers annually and generate tens of thousands of jobs.

Source: TechSpot

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Muhammad Zuhair


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