Taiwan is one of the most essential countries in the world when it comes to technology. With its registered office there TSMC (the world’s largest company in the production of semiconductors) is located in the center of global chip trade. Since America also wants to regain a piece of this technological cake, it led to some conversation about potential contracts between these two countries.
As reported ReutersThe American Secretary of Trade Howard Lutnick told News Nation (American television network) that he would propose a 50/50 division with Taiwan for future chip production. Therefore, the US government wants Taiwan to move by 50% tokens, which it produces for us they exploit in the USA. TSMC has FABS in America, newly built with plans for more, but they do not make up for such a immense global production as its facilities in Taiwan. This proposed agreement would try to strive for a huge augment in production on American soil.
Cheng Li-Chiun, a Taiwanese politician and deputy prime minister, told journalists: “Our negotiating team has never committed to dividing 50/50 on the tool.
In exchange for this division, he is currently not talking about what exactly will be offered. Last week, it was reported that the US government wants to impose tariffs on American companies that do not acquire an equal amount of American tokens. This would affect the request of TSMC. America is already offering “free of charge” for companies currently building American land, so it seems that TSMC will be able to avoid tariffs with American FABS. Semiconductors were a matter of the claim to Trump’s tariffs over the past year, but 20% of Taiwan exports from Taiwan.
For President Donald Trump, America consistently implemented and then returned and then repeated, and then changed the conditions around the tariffs to augment production in this country. These tariffs seem to punish consumers for buying technologies outside the USA and force companies to open American facilities or acquire parts from the country. It seems that it slightly encourages production, although some of them were also thanks to the contracts concluded by the Biden administration. TSMC invests $ 100 billion in three recent FAB in the USA, and Apple pushed the US to $ 600 billion.
At the end of the year, TSMC will lose their special export rights, which previously allowed him to export rapidly. Trump reportedly threatened the “big tax” up “maybe 100%” before opening its own American American, so it is not resistant to throwing global weight. At the beginning of this year, it was announced that every Taiwanese companies with FAB producing outside Taiwan must be a generation of nodes. So the United States and Taiwan are contrary to politics.
TSMC has its N2 process node in work for the production of volume this year, and its most up-to-date A16 node and N2 derivatives will appear next year. After that he has already announced his node A14. Most N2 productions will be in Fab 20, located in Taiwan. TSMC Arizona, American branch of the company, produces N4 technologyWith plans for achieving volume production on N3 in 2028, it also plans to open a third object, which will produce systems on N2 and A16 nodes at the end of the decade. So this is quite a delay for an American company.
More advanced nodes offer greater benefits for systems of them when it comes to performance and performance, while Apple and AMD are often the first to queue that exploit the latest technologies.
According to Reuters, Prime Minister Cho Jung-tai said: “Critical substantive consultations are currently in progress,” and Cheng Li-Chun talked to the USA. Apparently they had discussions that suggest “certain progress”.
The plan may be a conversation through further conditions to augment production in the US or accelerate the adoption of recent nodes, but Cheng’s comments suggest that the 50/50 division is unlikely. It’s not like you can also turn on a recent process node day by day, because these are extremely intricate processes often requiring recent methods, lithographic machines and even devices. So all plans will not materialize soon if both countries ever reach any agreement.
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