2024-07-03 06:30:52
The semiconductor industry is constantly evolving. But the United States has fallen from its pedestal! Undisputed leaders in this field for years, they are trying to regain control with billions from the Taiwanese giant TSMC. The excessive dependence of the United States on semiconductor production in East Asia is a challenge to its sovereignty.
Semiconductors are a major technology for almost all industrial activities. They are found in many modern devices, computers, smartphones, cars and even washing machines and air conditioners.
Their importance has increased with the development of artificial intelligence (AI), whose global market is expected to reach $71 billion in 2024, an increase of 33% compared to 2023 according to Gartner. The next step will be even more decisive for the sovereignty of states with quantum computing.
However, in this field, there is a key player: Taiwan Semiconductor Manufacturing Company (TSMC). Created in 1987 in Taiwan, this giant dominates the semiconductor market, representing more than 50% of global turnover. With tens of billions of investments per year, TSMC is therefore the main supplier for American technology giants such as Apple, Nvidia, Qualcomm and AMD. Despite the presence of major American companies, the United States remains dependent on TSMC for the manufacture of its chips.
The country’s share of global semiconductor manufacturing capacity has fallen from about 36% in 1990 to about 10% in 2020. Intel has lost its leading position to TSMC, whose technological superiority and production capacity are undisputed, making the United States vulnerable to this dependence.
A $52 billion fund
Intel’s descent dates back to 2010. At that time, Apple decided to manufacture its own chips (Apple Silicon), first for the iPhone and then for its computers in 2020. The loss of this major customer transformed Intel from an industry leader to a secondary player.
In addition to the loss of this major customer, the American foundry encountered industrial difficulties with its 10 nanometer (nm) and then 7 nm engraving processes. Enough to delight its two main competitors, the American AMD and TSMC. As a result, Intel even had to order processors from TSMC while it resolved its technical problems.
Given the geopolitical tensions between the United States and China (which directly concerns Taiwan), it is urgent for Intel’s country to relocate chip manufacturing to its own lands. A Chinese takeover of TSMC’s factories would be a disaster for the United States, but also for the rest of the world, especially Europe.
As early as 2021, the National Defense Authorization Act for Fiscal Year authorized an incentive program for the construction and equipment of semiconductor factories in the United States. In July 2022, Congress enacted the CHIPS and Science Act. Congress appropriated three funds(1) of $52 billion to support companies ready to meet semiconductor challenges, particularly in the areas of defense, security and technological innovation.
Thanks to this windfall, Intel will invest in two semiconductor factories in Arizona. The Taiwanese giant will also have factories on American soil. It benefits from a subsidy of 6.6 billion dollars and a low-interest loan of 5 billion. The wolf is in the sheepfold…
(1) « CHIPS for America Defense », « CHIPS for America International Technology Security and Innovation » et le « CHIPS for America Workforce and Education ».
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