Sun, 18 May 2025

Sun, 18 May 2025 The secretive US factory that lays bare the contradiction in Trump's America First plan

An exclusive look inside the closely guarded factory the president wants to become a foundation stone for a US golden age.
1. TSMC's expansion: TSMC is building a new factory in Arizona to produce chips for US companies such as Apple and Nvidia. 2. Trump's claim: Former President Trump claimed that his tariffs on Taiwan and semiconductors led to TSMC's decision to expand its operations in the US. 3. Global supply chain: The semiconductor industry relies on a global supply chain, with materials sourced from countries like Japan, the Netherlands, and Germany. Tariffs could disrupt this supply chain. 4. Geopolitics: The expansion of TSMC's Arizona factory is seen as a strategic move by the US to gain technological and economic supremacy over China. 5. Taiwan's role: Taiwan plays a critical role in the semiconductor industry due to its expertise and access to specialized equipment, despite not having special access to raw materials. 6. Chinese response: Chinese technologists have been working around export bans to develop competitive indigenous technology, making it unclear whether US policies are effective in limiting China's access to frontier semiconductor technology. 7. Global implications: The expansion of TSMC's Arizona factory and the global semiconductor industry's reliance on a complex supply chain highlight the challenges of navigating trade policies and technological competition. Some potential questions that arise from this article include: 1. Will TSMC's expansion in Arizona lead to increased US competitiveness in the global tech market? 2. How will tariffs affect the global semiconductor industry, particularly if implemented in combination with export bans on sensitive technology? 3. Can China successfully develop its own indigenous technology to counter US and Taiwanese dominance in the sector? 4. What are the long-term implications of this strategic competition for the global economy and technological innovation?
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