Chip production in the US is declining, AMD, Intel and Qualcomm are asking Biden for a remedy

Lisa Su as CEO of AMD, Bob Swan as CEO of Intel and Steve Mollenkopf as CEO of Qualcomm signed a letter to President Biden asking as a Semiconductor Industry Association to resolve the situation. Representatives of other brands – Broadcom, IBM and Nvidia – joined the call.

They point out that the US share of semiconductor production has been falling for a long time, and while in other countries (China, Taiwan, Korea) governments are doing what they can to support the semiconductor industry, nothing like this is happening in the US. Now, in fact, the situation has reached such a state that most American IT brands rely on a single foreign company, TSMC.

In 1990, the US share of world chip production was 37%. In 2020 12%.

The first (but so far unique) impulse came from the previous American president, Donald Trump, who was in favor of Apple and sought to build a TSMC factory in the USA. The TSMC management (albeit with the comment “we will not do it for Trump’s sake, but for the sake of customers”) has decided to comply with this request and a factory in Arizona is planned.

However, this can be understood at most as a solution for Apple, not for other companies (which actually corresponds to the composition of the brands mentioned in the letter). Both TSMC and Samsung would be willing to consider (other) factories in the US, but without better conditions than they have for construction on home soil, this is of course not very interesting for them.

The decision and the method of solution thus depend on the Biden administration.

Source: by

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