In December 2021, concerns were raised about the possibility of a Chinese takeover of TSMC, the world’s largest foundry. Fast forward 28 months later, and these concerns remain relevant. According to U.S. Commerce Secretary Gina Raimondo, a potential Chinese invasion of Taiwan and control over TSMC could have devastating effects on the U.S. economy.

Here are some key points to consider:

– The U.S. is heavily dependent on TSMC for 92% of its leading-edge chips.
– TSMC and Samsung Foundry are the only companies producing cutting-edge smartphone application processors using a 3nm process node this year.
– To reduce dependency on foreign suppliers, the U.S. government has announced a support package for TSMC’s Arizona facilities.
– TSMC has increased its commitment to its U.S. fabs and plans to open a third manufacturing facility in 2030.

In case of an invasion scenario:

– The U.S. military may destroy TSMC’s Taiwan-based fabs to prevent advanced chip-making equipment from falling into Chinese hands.
– Taiwan has vowed to protect TSMC’s facilities in case of a conflict with China.

The efforts to secure the semiconductor supply chain highlight the importance of technological sovereignty and national security in today’s interconnected world. Stay tuned as we continue to monitor developments in this critical industry.