Apple chip partner TSMC to take part in White House semiconductor shortage summit

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in General Discussion
Apple chip partner TSMC is thought to be attending a White House virtual summit on Monday, to discuss with other tech executives and chip producers on how to fix the global semiconductor shortage.




The United States and governments around the world are keen to fix the problem of chip shortages, which has led to issues for device producers in acquiring sufficient supplies. The problem is also affecting Apple, with issues acquiring some parts affected by the market problems.

As part of a bid to find a solution, the White House is holding a virtual summit on Monday, which will include the CEOs and other executives from many major producers. According to CNBC, the companies will include Intel, Dell, Samsung HP, Alphabet, GM, and others.

While Apple isn't on the list of companies that are thought to be participating in discussions, it is represented in proceedings by TSMC. The chip foundry, which works with Apple on A-series chips as well as Apple Silicon, is making major investments in production in the United States.

TSMC's plans include a factory in Arizona for chip production, an effort valued at approximately $12 billion, which is highly likely to provide some production capacity intended for Apple's products. In March, its board approved the issuing of bonds valued at $743 million to find its production expansion, with the company declaring in April it planned to spend $100 billion on chip fabrication expansion over three years.

The summit will be hosted by National Security Advisor Jake Sullivan and NEC Director Brian Deese, and will also be joined by Secretary of Commerce Gina Raimondo. The session will discuss President Joe Biden's American Jobs Plan, as well as how to improve the U.S. supply chain for semiconductors.

Biden signed an executive order on February 24 that set up a 100-day review of supplies for processors, batteries, and pharmaceuticals. It is thought the review could lead to a more proactive one-year review probing domestic production, and the possibility of using the Defense Production Act.

The White House also issued its budget request to Congress on Friday, which The Verge reports includes a request for $150 million to find a pair of manufacturing programs. One of the programs will focus on the semiconductor shortage.

Comments

  • Reply 1 of 10
    ppietrappietra Posts: 250member
    It is kind oh weird that Alphabet is there but not Apple nor Microsoft. I mean, even taking into account that Google builds its own servers and sells some small appliances, it’s business doesn’t seem to suffer much from any supply chain hiccups, certainly not in the same way as a company whose main business is to sell hardware.
    watto_cobra
  • Reply 2 of 10
    rob53rob53 Posts: 2,496member
    I've said it before, we live in a multinational economy where almost every country in the world contributes raw materials, labor, and manufacturing facilities for goods used around the world. Trying to force manufacturing within the USA is not necessarily beneficial to us or other countries. I know some people could care less about other countries but we are ALL citizens of this world and what one country does affects other countries. Isn't it time we just try to work with each other instead of trying to put other countries out of business?
    baconstangGeorgeBMacwilliamlondonavon b7muthuk_vanalingam
  • Reply 3 of 10
    Find... Fund... There really isn't that much difference between U and I in a connected world.
    aderutterwatto_cobra
  • Reply 4 of 10
    CuJoYYCCuJoYYC Posts: 55member
    I sure hope someone brings up the topic of water shortages. TSMC has faced production pressures the last several months due to drought in Taiwan yet TSMC, Intel, and maybe others. want to build chip fabs in Arizona when humans really ought not to live given the continual shortage of water. Think i through folks. Think it through.
    watto_cobra
  • Reply 5 of 10
    GeorgeBMacGeorgeBMac Posts: 9,278member
    rob53 said:
    I've said it before, we live in a multinational economy where almost every country in the world contributes raw materials, labor, and manufacturing facilities for goods used around the world. Trying to force manufacturing within the USA is not necessarily beneficial to us or other countries. I know some people could care less about other countries but we are ALL citizens of this world and what one country does affects other countries. Isn't it time we just try to work with each other instead of trying to put other countries out of business?

    There was a time when the U.S. had the means to meet all of its (then modest) needs internally.
    That time is gone.   As you point out, trying to source all critical products internally is like playing a game of whack-a-mole.   It's a losers, game.

    But, while we depend on other nations for materials, components and products, they also depend on us.  So, everybody benefits from cooperation where each does what they do best.   Yes, we want to keep ourselves safe.  But the go-it-alone strategy is not the path that will keep us safe & strong.

    Wgkrueger
  • Reply 6 of 10
    blastdoorblastdoor Posts: 2,362member
    TSMC's plans include a factory in Arizona for chip production, an effort valued at approximately $12 billion, which is highly likely to provide some production capacity intended for Apple's products.

    Is this just speculation or is there info to support it?

    At least initially, the AZ fab will not be on TSMC’s leading edge. Also, why fab in AZ and ship to China for assembly when Taiwan is so much closer?

    If this fab were to make anything for apple, I’d guess it might be for desktop Macs, where a smaller volume of larger chips on a more mature process might make sense. 

    I wonder if this AZ fab is more likely to produce for US defense contractors, automotive manufacturers, and maybe AMD. 

    watto_cobra
  • Reply 7 of 10
    GeorgeBMacGeorgeBMac Posts: 9,278member
    blastdoor said:
    TSMC's plans include a factory in Arizona for chip production, an effort valued at approximately $12 billion, which is highly likely to provide some production capacity intended for Apple's products.

    Is this just speculation or is there info to support it?

    At least initially, the AZ fab will not be on TSMC’s leading edge. Also, why fab in AZ and ship to China for assembly when Taiwan is so much closer?

    If this fab were to make anything for apple, I’d guess it might be for desktop Macs, where a smaller volume of larger chips on a more mature process might make sense. 

    I wonder if this AZ fab is more likely to produce for US defense contractors, automotive manufacturers, and maybe AMD. 


    It will give them leverage in case the U.S. ever decides that they want to impose trade barriers, sanctions or whatever.  Other than that, I see no advantage to them.
    watto_cobra
  • Reply 8 of 10
    steven n.steven n. Posts: 1,214member
    blastdoor said:
    TSMC's plans include a factory in Arizona for chip production, an effort valued at approximately $12 billion, which is highly likely to provide some production capacity intended for Apple's products.

    Is this just speculation or is there info to support it?

    At least initially, the AZ fab will not be on TSMC’s leading edge. Also, why fab in AZ and ship to China for assembly when Taiwan is so much closer?

    If this fab were to make anything for apple, I’d guess it might be for desktop Macs, where a smaller volume of larger chips on a more mature process might make sense. 

    I wonder if this AZ fab is more likely to produce for US defense contractors, automotive manufacturers, and maybe AMD. 

    3nm and 5nm is not “old tech” and is defiantly leading edge. 
  • Reply 9 of 10
    avon b7avon b7 Posts: 5,692member
    steven n. said:
    blastdoor said:
    TSMC's plans include a factory in Arizona for chip production, an effort valued at approximately $12 billion, which is highly likely to provide some production capacity intended for Apple's products.

    Is this just speculation or is there info to support it?

    At least initially, the AZ fab will not be on TSMC’s leading edge. Also, why fab in AZ and ship to China for assembly when Taiwan is so much closer?

    If this fab were to make anything for apple, I’d guess it might be for desktop Macs, where a smaller volume of larger chips on a more mature process might make sense. 

    I wonder if this AZ fab is more likely to produce for US defense contractors, automotive manufacturers, and maybe AMD. 

    3nm and 5nm is not “old tech” and is defiantly leading edge. 
    To be fair he didn't say it was 'old tech'.

    5nm and 3nm are, and will be, very expensive (and profitable) but in the general scheme of production quantities, just a very, very small fragment of the chip market.

    Samsung has been leading investments in this area for a few years now (to frankly unheard of levels) and far outstripping TSMC.

    Now TSMC is expected to begin ramping up its own investments too.


  • Reply 10 of 10
    blastdoorblastdoor Posts: 2,362member
    steven n. said:
    blastdoor said:
    TSMC's plans include a factory in Arizona for chip production, an effort valued at approximately $12 billion, which is highly likely to provide some production capacity intended for Apple's products.

    Is this just speculation or is there info to support it?

    At least initially, the AZ fab will not be on TSMC’s leading edge. Also, why fab in AZ and ship to China for assembly when Taiwan is so much closer?

    If this fab were to make anything for apple, I’d guess it might be for desktop Macs, where a smaller volume of larger chips on a more mature process might make sense. 

    I wonder if this AZ fab is more likely to produce for US defense contractors, automotive manufacturers, and maybe AMD. 

    3nm and 5nm is not “old tech” and is defiantly leading edge. 
    Ok, let me explain some numbers to you —I can do this because I have a BS in math.

    This is 2021. 5nm is currently leading edge. The AZ plant is supposed to come online in 2024 with 5nm. 

    What is leading edge in 2021 will not be leading edge in 2024.

    understand now?
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