has started construction on its $12 billion Arizona plant that will go into mass production in 2024. Intel said in March that it would invest $20 billion in two new fabrication plants in Arizona.
But geopolitics is the crucial backdrop. Chip manufacturing is concentrated in Asia. And for the most advanced nodes, TSMC and Samsung are the only players. TSMC, which serves customers including Apple and Nvidia, had more than half the market for foundry business in the second quarter, according to TrendForce. Samsung was a distant second with around 17%, but it also makes chips for its own use.
The upside for chip makers is that governments eager for their technology are prepared to offer generous incentives. But that could. TSMC, for example, lost Huawei as its customer due to the Trump administration’s export controls. Western politicians asking their constituents to help fund new chip plants—especially foreign-owned ones—may eventually try to impose more regulation as well.
Source: News Formal (newsformal.com)
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