May 19, 2020
The world’s only two premiere sources of microchips is Taiwan’s TSMC, which manufactures the most advanced 7-nanometer processor in the world (Intel failed for three years and trying to launch America’s first 7-nanometer processor in 2021) and Japan’s Softbank, through their subsidiary company ARM, controls major patents for microprocessor architectural designs. Meaning if Softbank denies you permission to use their chips, it will be scientifically impossible for you to build your own efficient microprocessor without using Softbank’s patented architectural designs and you will be violating every international patent law.
The Lockheed-Martin F-35 needs Taiwan’s TSMC 7-nanometer processor chips to function as well as American military A.I. technology. TSMC also supplies Apple, AMD, Google, Qualcomm, Intel, and every American technology firm as well as fellow Asian firms. However, tensions between the United States and China have been rising and the thought of TSMC technology falling into mainland China’s hands has made America very nervous.
The 7-nanometer processor war is dominated by Asians and Asian-Americans. Asians are currently the CEOs for AMD, Intel, NVIDIA, Microsoft, and Google and are all locked in a battle to keep pace with one another.
The Trump Administration has secured a deal that will safeguard American defense for decades. TSMC has agreed to open a $12 billion factory in Arizona and create 1,600 high-tech jobs. The U.S. government will personally be involved with the construction of the new factory and chip production is expected to begin as early as 2024 and produce 20,000 semiconductor wafers per month, according to Wired.
This is a big win for the Trump Administration because it finally brings chip manufacturing back to the United States, after being completely dependent on Asian companies and countries for national security. However, the company is still Asian owned. The factory in Arizona will not contain TSMC’s most advanced trade secrets or methods of 7-nanometer production, however.
The Taiwanese are still very wary of their technology falling into American hands as well, being America’s Intel was at least three years behind TSMC.
This latest move will cut-off Huawei from advanced chips and China is expected to retaliate by targeting all American tech companies doing business in China, thus, cutting off American companies from the largest consumer market on earth.
Feature Image via Nikkei Asian Review