More Chips to Come

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The United States has outsourced many of its manufacturing jobs in recent years. Chipset manufacturing is one of the biggest ones. While some chipsets are made in the United States, through companies such as ONN Semiconductor and Texas Instruments, the majority of chipsets are produced overseas in Taiwan and China. 

The US has started to fear that the nation relies on others too much to produce what have become essential pieces of technology. One of the primary reasons for these worries is the difficult state of affairs between Taiwan and China. These chipsets sit in thousands of electronic devices from medical equipment to smart phones.. As a result of the chip crisis that has taken over the world, the United States has introduced new legislation, The CHIPS and Science Act. This law aims to exponentially increase the production of chipsets in the United States. 

Taiwan is a major supporter of this new legislation, as they have announced plans to upgrade their facilities in Arizona in order to increase production. Taiwan Semiconductor Manufacturing Company (TSMC) is currently the world’s largest manufacturer of chipsets. TSMC is also home to a large plant in Arizona and has announced a sizable upgrade plan in the amount of $40 billion dollars. TSMC has also released plans to build a second factory in the United States. Like the first plant, this second one will also be located in Phoenix, Arizona. This also goes to show that the main goal of the CHIPS and Science Act is a success, drawing more production to the United States.

TSMC, however, is not the only company to announce big plans as a result of the CHIPS Act. According to The New York Times, “Chip makers have responded with announcements of major factory projects, including Intel in Ohio, Micron Technology in New York and Samsung Electronics in Texas.” 

This growth in production will also come with a growth of the economy as the development of new plants for these companies will mean more jobs. The increased production as a result of the new plants will hopefully mean a shorter time frame for the end of the chip shortage.

Categories: Technology

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