US officials held discussions with several semiconductor companies about the possibility of expanding domestic manufacturing capabilities, as the country aims to reduce reliance on goods from China, The Wall Street Journal (WSJ) reported.
The plan would apparently see Intel expand its US operation beyond manufacture of its own chips to include a commercial plant capable of supplying various microelectronics for government and private sector customers.
WSJ reported discussions were also underway with Taiwan Semiconductor Manufacturing Company (TSMC) to build a new facility in the US, though a company representative said it is yet to make a final decision.
Additionally, US officials reportedly weighed a move to help Samsung Electronics expand its capabilities in the country.
WSJ reported Intel CEO Bob Swan told the Department of Defence strengthening the domestic supply chain is “more important than ever, given the uncertainty created by the current geopolitical environment”: VP of policy and technical affairs Greg Slater added in a statement to the newspaper Intel is “very serious” about the proposal.
Ongoing trade tensions between the US and China, along with the global Covid-19 (coronavirus) pandemic have heightened US concerns about the country’s reliance on the international supply chain.
In March, Chinese vendor Huawei warned the country’s government could retaliate [1] if a block on the supply of components featuring US-designed equipment [2] was enforced.
[1] https://www.mobileworldlive.com/featured-content/home-banner/huawei-sees-2020-as-pivotal-year/
[2] https://www.mobileworldlive.com/featured-content/top-three/us-advances-move-to-limit-huawei-chip-access/
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