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U.S. Discusses Intel, TSMC Plants to Cut Asia Chip Reliance: DJ

U.S. Discusses Intel, TSMC Plants to Cut Asia Chip Reliance: DJ

(Bloomberg) -- The Trump administration is talking to chipmakers including Intel Co. and Taiwan Semiconductor Manufacturing Co. about building plants in the U.S. to help pare reliance on Asian imports, according to Dow Jones.

Some officials are also interested in helping Samsung Electronics Co. expand U.S. operations to produce more advanced chips, according to the report, which cited correspondence viewed by Wall Street Journal and people familiar with the discussions. The Korean company already has a plant in Austin, Texas.

The moves come partly because coronavirus upheavals have stoked long-standing concerns about the U.S. dependence on chips made in Asia, particularly Taiwan, the report said. Taiwan-based TSMC, the world’s largest contract chip manufacturer, is one of only three companies capable of making the fastest, most-cutting-edge chips, Dow Jones said.

TSMC has spoken to officials in both the commerce and defense departments about building a U.S. factory, according to the report. It has also discussed the opportunity with Apple Inc., one of its largest customers.

The Taiwanese company is “actively evaluating all the suitable locations, including in the U.S., but there is no concrete plan yet,” it said a statement to Dow Jones.

Intel is “very serious” about the plans, Greg Slater, its vice president of policy and technical affairs, told Dow Jones. The company would operate a plant that could supply both the government and other customers, he said.

A U.S. official said in a statement to Dow Jones that the administration is committed to “technological leadership” and collaborates worldwide on “research and development, manufacturing, supply-chain management, and workforce development opportunities.”

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