CHIPS Act won’t help US chip manufacturing, says former TSMC spokesperson


A former spokesperson for the Taiwan Semiconductor Manufacturing Company (TSMC) expressed its belief that the recent Multi-Billion Dollar Semiconductor Financing Measure (CHIPS ACT) which was approved by the US Congress earlier this week will not be enough to significantly change the semiconductor industry.

The spokesperson’s remarks were made during a Twitter chat hosted by Bloomberg technology. She said the size of the bill and TSMC capital expenditure barely touches the surface of setting up large-scale facilities. The interview took place earlier this week, during which Bloomberg Technology officials spoke with Ms. Elizabeth Sunwho worked with Dr. Morris Changthe founder of the company, at TSMC for 16 years oldof 2003 at 2019.

He was asked which areas of the WE., EU, Japanand China have the highest potential to create a robust semiconductor industry. Ms. Sun responded by stating the following:

Well, it’s a very complicated question as we said before, the semiconductor industry has been a global industry with an established global supply chain. Now more suddenly well. Say suddenly in the past few years, all these regions and all these countries are all talking about competition and building their own complete supply chain at the national level. Good. I don’t know if it’s really worth it. So is it really necessary? Is it really possible? And even if it is possible, how long will it take? So I think we should be spending resources to help iron out the knots in the supply chain. Instead of, you know, throwing billions and billions of money at building all these separate, fragmented manufacturing capabilities all over the place, I think the industry should spend its resources wisely on researching and developing new materials, d ‘design architectures and new applications of semiconductors’

The chip manufacturing sector is difficult to keep permanently profitable according to Elizabeth, adding that record demand following the coronavirus outbreak has obscured this truth about companies’ financial statements. She went on to say that because the industry is so capital intensive and technologically intensive, it is almost difficult for newcomers to catch up with established companies.

A number of provisions of the CHIPS Act provide government assistance for chip companies wishing to establish factories in the United States or institutes for the study and development of new chip manufacturing technologies, including for nodes whose feature size is less than three nanometers.

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