The Push for Microchip Manufacturing in the US

Last week, the White House gave $1.5 billion to GlobalFoundries, a company that makes chips. This money is part of the 2022 CHIPS Act. The goal is to make more chips in the United States and improve how they are made. Even though this money is available, two big chip companies in the US have delayed their plans to build more factories. This is because the urgent need for chips during the pandemic has decreased. Companies are not rushing to build more factories right now.

The Taiwan Semiconductor Manufacturing Company (TSMC), a leading chipmaker, said it will start a new factory in Arizona in 2025 instead of 2024. Another one will come in 2027 or 2028, not in 2026 as first planned. Intel, another big name in chips, was going to open two factories in Arizona this year. But it has moved the opening of another factory in Ohio from 2025 to 2026.

Looking at the big picture, besides Intel's factories near Phoenix, Samsung plans to start a factory near Austin, Texas, this year. These projects are expensive, costing between $17.3 billion and $20 billion. They began in 2021 and early 2022. The first factory by TSMC and another by Micron in Boise, Idaho, are set to be finished next year. Texas Instruments, a long-standing chip company, will finish four new factories in North Texas next year. They will also open a new place in Utah in two years. These factories will make special kinds of chips used in computers and other devices.
The CHIPS Act supports all kinds of chips, but the newest and most advanced ones are getting the most attention. These chips, as small as 5 nm and 3 nm, are important for new gadgets and cars. They also help the US be more self-reliant in technology. TSMC and Samsung will make these advanced chips in the US.

A New Microchip Construction Boom?
Chart: Statista

Sources: Z2dataSemiconductor Industry Association

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