WSJ "US Pushes Semiconductor Self-Sufficiency to Reduce Dependence on Asia"

[Asia Economy Reporter Kim Hyo-jin] The U.S. government is pushing for domestic production to reduce dependence on advanced semiconductors produced in Asia, the U.S. Wall Street Journal (WSJ) reported on the 9th (local time).

The WSJ explained that concerns have taken hold that the supply chain of semiconductors, a core component of advanced industries, could collapse due to the global spread of the novel coronavirus (COVID-19).

According to the report, U.S. government officials are negotiating with Intel, the largest semiconductor company in the U.S., and Taiwan semiconductor company TSMC about building factories within the United States.

The WSJ cited sources saying that TSMC is discussing plans to build semiconductor factories in the U.S. not only with its major customer Apple but also with the U.S. Department of Commerce and the Department of Defense. TSMC stated in a press release, "We are evaluating all suitable locations including the U.S., but there are no concrete plans yet."

The WSJ also reported, citing sources, that U.S. officials are interested in helping South Korea's Samsung Electronics, which already has a factory in Austin, Texas, expand its contract manufacturing organization (CMO) facilities to produce advanced semiconductors in the U.S.

The plan to build foundries (semiconductor contract manufacturing facilities) in the U.S. has been discussed for some time, but recently gained momentum due to concerns that the Asian supply chain could be disrupted by the pandemic and the difficulty of self-supplying advanced semiconductors for the U.S. defense industry, highlighting national security concerns.

The U.S. Department of Defense identified Taiwan, China, and South Korea as the three main pillars representing the overall U.S. digital economy’s dependence in a 2019 report on the relationship between the microelectronics supply chain and national security.

The report specifically described Taiwan as a single point-of-failure that could halt the majority of the U.S.’s largest and most important technology companies all at once if an incident occurs.

The U.S. Department of Defense has consistently expressed concern that China, whose relations with the U.S. are becoming increasingly hostile, is investing massive funds in semiconductors because advanced semiconductors are essential in modern military equipment.

In the same context, the Trump administration has recently strengthened semiconductor export controls against China.

The U.S. Department of Commerce abolished the system that allowed U.S. companies to export semiconductors to China without a license when not for military use, and is considering regulations to prevent China’s telecommunications equipment company Huawei from having semiconductors manufactured by TSMC.

This content was produced with the assistance of AI translation services.