TSMC weighs new US plant to respond to Trump pressure

Taiwan chipmaker faces scrutiny from Washington over security concerns

20200316 Tainan Plant

A TSMC plant in the southern Taiwanese city of Tainan. The chipmaker is also preparing another plant in the city but is considering the U.S. as a location to produce 2-nanometer chips. (Photo by Akira Kodaka)

CHENG TING-FANG and LAULY LI, Nikkei staff writers

TAIPEI -- Taiwan Semiconductor Manufacturing Co. is stepping up its evaluation of whether to build an advanced chip facility in the U.S. in response to pressure from Washington, which wants the world's biggest contract chipmaker to produce on American soil over security concerns.

TSMC, which makes chips for U.S. F-35 fighter jets and supplies almost all global chip developers, including Apple, Huawei, Qualcomm and Nvidia, is actively considering a U.S. plant, two sources briefed on the plan told the Nikkei Asian Review. A new plant would aim to be the world's most cutting-edge, producing semiconductors more advanced than the 5-nanometer node chips that Apple will adopt in its latest 5G iPhones this year, they said.

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