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JANUARY 2022 I SMT007 MAGAZINE 27 est contract chipmakers, TSMC recently an- nounced it is reviewing a plan to set up a spe- cialty technology wafer fab in Japan. As TSMC's revenue grows, the company has indicated it will expand production ca- pacity in China but that does not rule out the possibility of a "second phase" expansion at its $12 billion factory in Arizona. So, while TSMC may not be American owned, made in Arizona is still made in America. ere are other major chip companies con- sidering manufacturing at least some of their chips in the United States; some already are. ese include NVIDIA, Samsung (the world's largest), SK Hynix, Micron Technology, Qual- comm, and others. ese companies, and others, have been considering building new plants to meet the growing demand and to help reduce the supply chain chip shortage, with some of that produc- tion coming to the United States. is would put significant manufacturing back on U.S. soil, strengthening both our economic and na- tional security. 1 Chip makers, dealing with this year's con- tinuing semiconductor shortage, are planning to diversify their supply chains to avoid future supply chain problems, especially as the de- mand for advanced electronics in many sectors continues to grow. TSMC and Samsung are two of the leading possibilities, but along with Intel and others, many have suggested that they may pull the plug on making chips in the United States unless government assistance is on the table. Company executives are hinting that if they don't get tax breaks and other in- centives, they'll build their semiconductor fac- tories elsewhere. If our lawmakers do not listen and just contin- ue to plan to raise taxes, they will effectively end American ambitions to return chip manufactur- ing to its shores. e need for more global chip fabrication is now and is globally recognized. e cost is large and the time to build these facilities is long. e opportunity is real, and the timing is now. We can expect to hear more on this top- ic over the coming months. Will the United States gain back significant chip manufactur- ing share or will the decline in capability con- tinue? I expect there will be some updates and announcements soon and you can be sure we will follow this topic and report back to you re- garding the status. SMT007 References 1. "Semiconductors: Key to Economic and Nation- al Security," Senate RPC, April 29, 2021. Dan Feinberg is an I-Connect007 technical editor and founder of Fein-Line Associates. To read Dan's column, Fein-Lines, or contact him, click here.

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