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TSMC and Intel CEO’s needle each other over US-based chipmaking

 The world of chipmaking is a pretty complex one. Clearly, the pressure is building up behind the scenes as more gamers are hoping to get their hands on an affordable GPU option, and CEOs of big tech companies are getting political. TSMC chairman Mark Liu and Intel CEO Pat Gelsinger got into a rare public spat over things like national security and geopolitical instability. Normally, discussions about millions of dollars.

Let’s look at some of the previous information. New legislation, known as the “CHIPS for America Act & FABS act,” is being worked on for passing by US lawmakers. In the spite of National Security as being the primary concern, these bills will help to shore up the United States of America-based semiconductor research and development and manufacturing of the same. Funding for the CHIPS was passed by the US Senate in June 2021. The discussion about the legislation is halted in the House of Representatives. An open letter, signed by the CEOs of AMD, Nvidia, Apple, Intel, among many others, was addressed to Congress to push the Pass button on the legislation. The calls from different companies on passing this legislation will only get louder.

Bloomberg and Taipei Times, last week, reported that Intel CEO Pat Gelsinger said, “Taiwan is not a stable place,” at the Fortune Tech summit in California. This raised some eyebrows in the audience. He also said that the US government should support a sustainable semiconductor supply chain in the country.

Pat Gelsinger is not wrong, though, and China continues to show its power in the region. The regular poking in the airspace of Taiwan by Chinese military aircraft is sending a vague signal of concerns of further disruptions that could happen. These disruptions can be devastating for the already fragile world economy. The Taiwan region is prone to earthquakes also, so it is very hard to say how safe is the fabricating facilities in Taiwan.

The statements by Intel’s CEO were rebuked, in a public conference, by TSMC’s CEO Mark Liu. When someone asked Mark about Gelsinger’s comments, he said, “There’s nothing that needs to be addressed.” He also said, “Not too many people will believe what Intel says.” This might be an unusual comment to a customer, but it’s coming from a Taiwanese business leader, where business is based on mutual respect.

A new $12 billion dollar facility is being made by TSMC in Arizona with the aim of commencing the volume of production of 5nm chips in 2024. This new TSMC fabricating facility will join Samsung’s $17 billion facilities in Texas. This clearly shows that the investment in US-based manufacturing of semiconductor chips is ramping up.

It doesn’t matter if the chips are made in Taiwan, China, or the USA for the consumers. Semiconductor manufacturing requires different rare metals and materials sourced from all over the world. Any shortage in these raw materials will make it hard for production by any of these big manufacturing plants. Companies such as TSMC and Intel are now feeling the pressure, ad the discussions on these topics of the shortage of material will not stop for coming weeks, months, or even years.

Source:- https://askrapidly.com/tsmc-and-intel-ceos-needle-each-other-over-us-based-chipmaking/

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