• TSMC Announces Plans to Launch a $3B Chip Production Factory in Nanjing, China



    TSMC, Apple’s Taiwan-based supplier recently announced plans to launch a $3 billion chip production factory in Nanjing, China without the help of any local corporate partners. The company is said to be keeping costs down by using equipment from its Taiwan facilities while also taking advantage of Chinese subsidies according to an official statement.

    To help address worries about technology that might be leaked to competitors, the company noted that by the time the Nanjing complex is completed, operations in Taiwan will be manufacturing chips one generation ahead. This is to remedy the situation where both individuals and the Chinese government are regularly accused of stealing data.

    One of the biggest reasons for TSMC being so interested in wanting complete ownership of the factory is intellectual property. The Taiwanese government has reportedly been concerned about semiconductor firms cooperating with China, even if the country’s market is now too big to ignore. As of right now, Taiwan’s economy still hinges on the tech supply industry. The new factory is contingent on the success of an application to Taiwan’s Ministry of Economic Affairs.

    Although TSMC has many other clients, it has quickly risen to prominence in the Apple supply chain. The company produced a majority of Apple’s A8 processors and releases a smaller proportion of A9 chips including the A(X in the iPad Pro. Rumors are suggesting that TSMC will become the sole supplier of next-gen A-series processors, a move which may cut Samsung out of the loop entirely. We’ll have to wait and see if this turns out to be true as well as how TSMC’s independent factory turns out.

    Source: TSMC (Investors), The New York Times
    This article was originally published in forum thread: TSMC Announces Plans to Launch a $3B Chip Production Factory in Nanjing, China started by Akshay Masand View original post
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