Intel and Taiwan Semiconductor Manufacturing Co. are both considering building new factories in the U.S., The Wall Street Journal reported Sunday. The companies acknowledged the plans to the paper.
The Journal said Intel and TSMC are acting at the behest of the Trump administration, which is seeking to reduce dependence on Asian chip manufacturers and blunt China’s aggressive foray into semiconductors.
“Intel is in discussions with United States Department of Defense to explore how to ensure continued US technological leadership and strengthen domestic sources for state-of-the-art microelectronics and related technology,” the company said in a statement Monday. “As the largest U.S.-owned manufacturer of semiconductors, Intel is well positioned to work with the U.S. government to operate a U.S.-owned commercial foundry and supply a broad range of secure microelectronics.”
The Journal posted an April 28 letter from Intel CEO Bob Swan to the U.S. Department of Defense indicating Intel is contemplating a factory for contract manufacturing, known in the chip industry as a foundry, to serve the defense industry and domestic customers.
TSMC operates as a foundry, building chips in Taiwan and China for Apple and many other large electronics companies. Intel is among the world’s most advanced chipmakers but primarily makes chips just for itself.
Intel tried operating foundries in its existing factories several years ago but attracted only one large customer. A dedicated foundry for contract manufacturing would represent a significant strategic shift for Intel.
Intel is Oregon’s largest corporate employer, with 20,000 working at its advanced factories, research labs and administrative offices in Washington County. It is already spending billions of dollars to expand its existing research factories at its Ronler Acres campus in Hillsboro.
Intel’s long-range construction plans for Ronler Acres indicate that site will be full when the current expansion is complete. The company owns additional acreage north of U.S. 26 in Hillsboro but has previously said it doesn’t envision making chips there.
That could suggest any Intel foundry goes elsewhere. Intel also makes chips in Arizona and New Mexico.
TSMC has one U.S. factory, the WaferTech facility in Camas. That 260-acre property was designed to hold several factories but after a series of construction and production problems didn’t expand beyond the single factory that opened in 1998.
U.S. economic development officials have sought for years to lure TSMC back to the U.S., without result.
A concerted push from the U.S. government, coupled with financial support, might change the equation for both TSMC and Intel.
