The Semiconductor Battle: Washington Strengthens Its Technological Defenses Against Beijing

The United States Receives Massive Investments in Semiconductor Industry from TSMC to Enhance Technological and Economic Security

In a strategic move reflecting the accelerating global competition in the semiconductor sector, Taiwan’s TSMC (Taiwan Semiconductor Manufacturing Company) announced a massive investment of $100 billion to support semiconductor manufacturing in the United States, bringing its total investment to $165 billion. This includes the construction of five new factories in Arizona, aligning with the U.S. strategy to enhance domestic technological capabilities and reduce reliance on foreign markets.

This move is part of efforts by the U.S. administration, led by former President Donald Trump, to make the United States a global hub for artificial intelligence and to strengthen its technological security. Trump described the investment as “a huge step by the world’s strongest company,” emphasizing that increasing semiconductor production in the U.S. is not only an economic matter but is also critical to national security.

These investments also fall under the “CHIPS Act,” a law aimed at reshoring semiconductor manufacturing to the U.S., seen as one of the key presidential initiatives to strengthen the national industry and reduce dependence on foreign sources, particularly amid rising tensions between China and Taiwan.

Investment Impact on the Semiconductor Industry

TSMC’s investment is a strategic move that enhances the U.S.’s ability to reduce the risks of relying on imported semiconductors from Asia, specifically Taiwan and South Korea. Dr. Hussein Al-Omari, a computer science professor and AI expert in Silicon Valley, explains that TSMC’s factory establishment in the U.S. helps mitigate geopolitical risks, especially as tensions between China and Taiwan escalate.

This investment will enable the U.S. to reduce China’s influence in the advanced semiconductor market, including technologies at the 5nm level and below. It will also contribute to accelerating the development of local AI and high-performance computing technologies, giving U.S. companies like Apple, Nvidia, and AMD a competitive edge in the global market.

Promoting Technological Independence and Expanding Cooperation

According to reports from CNBC, these investments are expected to foster increased collaboration between TSMC and major U.S. companies, enhancing supply chain resilience and lowering transportation costs. In this context, Chinese companies such as Huawei and SMIC may face additional challenges in acquiring advanced chips, forcing them to develop alternative technologies at higher costs.

This investment also emerges as a key tool in the competition between global powers for technological leadership. This move serves as a technological bridge, strengthening the U.S.’s ability to counter China’s ambitions in the semiconductor industry, which is highly competitive, especially in fields like artificial intelligence and high-performance computing.

Economic and Geopolitical Dimensions

Dr. Al-Omari highlights that this investment is not just an economic move but also has significant geopolitical implications. It helps reshape global supply chains in favor of U.S. companies and reduces geopolitical risks in case of further tensions between China and Taiwan.

On another note, Al-Omari points out that the future competition will revolve around advanced chip manufacturing, such as those using 2nm or smaller technologies, which strengthens the U.S.’s ability to maintain its technological lead in the global race.

Previous TSMC Moves in the U.S. Market

Prior to this announcement, TSMC had taken its initial steps in the U.S. market by investing $12 billion to build its first semiconductor factory in Arizona in 2020. It later increased this investment to $65 billion, adding a third factory. The company also received U.S. government support with a $6.6 billion grant from the U.S. Department of Commerce.

In this context, a spokesperson from Nvidia stated that the company would greatly benefit from TSMC’s global manufacturing network to enhance supply chain flexibility and improve its ability to adapt to rapid market changes.

Sources:

• CNBC Report
• Statements from Dr. Hussein Al-Omari, Computer Science Professor and AI Expert
• TSMC’s Announcements Regarding Its U.S. Investments