Advertisement

Trump administration in talks with chipmakers about building factories in U.S.

Trump retools COVID-19 task force to focus on economy
WATCH: Trump retools COVID-19 task force to focus on economy

The Trump administration is in talks with semiconductor companies about building chip factories in the United States, representatives from two chipmakers said on Sunday.

Intel Corp is in discussions with the United States Department of Defense over improving domestic sources for microelectronics and related technology, Intel spokesman William Moss said in an emailed statement.

READ MORE: Coronavirus: Canadian employers using thermal cameras, location-tracking smartphone apps against COVID-19

“Intel is well positioned to work with the U.S. government to operate a U.S.-owned commercial foundry and supply a broad range of secure microelectronics,” the statement added.

Taiwan Semiconductor Manufacturing Co (TSMC), on the other hand, has been in talks with the U.S. Department of Commerce about building a U.S. factory but said it has not made a final decision yet.

Story continues below advertisement
Coronavirus outbreak: Don’t let Trump bully to open border before Canada is ready: Former U.S. ambassador to Canada
Coronavirus outbreak: Don’t let Trump bully to open border before Canada is ready: Former U.S. ambassador to Canada

“We are actively evaluating all the suitable locations, including in the U.S., but there is no concrete plan yet,” TSMC spokeswoman Nina Kao said in a statement.

Intel Chief Executive Bob Swan wrote a letter to the Department of Defense in late March in which he expressed the company’s willingness to build a foundry — a term used in the industry to reference a chip factory — in partnership with the Pentagon.

READ MORE: Trump’s desire to be ‘king of ventilators’ may result in unexpected glut, experts warn

“This is more important than ever, given the uncertainty created by the current geopolitical environment,” Swan wrote in the letter dated March 30 and seen by Reuters on Sunday.

It comes amid increasing diplomatic tensions between the U.S. and China during the coronavirus outbreak, with both sides trading barbs over who is to blame for the spread of the disease after already being involved in trade tensions for almost two years.

Story continues below advertisement
Coronavirus outbreak: Trump claims COVID-19 will ‘go away’ without vaccine, says there might be ‘flare ups’
Coronavirus outbreak: Trump claims COVID-19 will ‘go away’ without vaccine, says there might be ‘flare ups’

“We currently think it is in the best interest of the United States and of Intel to explore how Intel could operate a commercial U.S. foundry to supply a broad range of microelectronics,” the letter from the Intel CEO added.

The Trump administration’s discussions with chipmakers were reported earlier by the Wall Street Journal, with the report adding that TSMC also has been talking with Apple Inc, one of its largest customers, about building a chip factory in the United States.

READ MORE: Boris Johnson says U.K. COVID-19 lockdown to remain; outlines minor ease of restrictions

TSMC declined to comment on the talks with the iPhone maker.

The Journal had also reported that U.S. officials are looking at helping South Korea’s Samsung Electronics Co , which has a chip factory in Austin, Texas, to expand its contract-manufacturing operations in the United States.

Story continues below advertisement

The U.S. Commerce Department, Samsung and Apple did not respond to requests for comment on Sunday.

Coronavirus outbreak: Could immunity passports become the new normal?
Coronavirus outbreak: Could immunity passports become the new normal?