TSMC to decide on US chip production plant next year

Source:Reuters Published: 2017/3/20 22:23:39

Taiwan's TSMC, the world's largest contract chipmaker and a major Apple Inc supplier, on Monday said it would take a decision next year on whether to build a US chip plant.

In January, TSMC Chairman Morris Chang had said the company did not rule out the idea of building a US foundry, joining many companies that are considering manufacturing in the US amid President Donald Trump's push to create more jobs.

"We won't make a decision until next year," TSMC spokesman Michael Kramer said. The company gets about 65 percent of its revenue from the US.

"We would sacrifice some benefits if we move to the States. But we have flexibility in Taiwan. If an earthquake happened for instance [in Taiwan], we could send thousands of people here as support, whereas it's harder in the States," he told Reuters.

Local media CNA news agency reported on Monday that TSMC will make a decision on the plant in the first half of 2018, citing unidentified sources. The report also said TSMC is considering an investment of about $16.41 billion) for the plant. TSMC is also reportedly looking at investing in Toshiba Corp's chip business.

Posted in: COMPANIES

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