Increasing investment in Japan and postponing the construction of factories in the United States, Sa

Mondo Technology Updated on 2024-01-31

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Samsung and TSMC are both chip manufacturing giants, both of which control more than 7% of the global chip foundry market, and are also the only two manufacturers that can achieve high-end chip manufacturing. Therefore, TSMC and Samsung have also become the targets of the United States, and the United States has come up with high subsidies to attract foreign companies to build factories in the United States.

However, the mind of the United States is not simple, and the subsidy has set a lot of additional conditions, and it is also very difficult to build factories in the United States. As a result, the giants increased investment in Japan and postponed the construction of factories in the United States, and Samsung and TSMC woke up.

As early as 2020, TSMC received an invitation from the United States to build a factory in the United States. At first, TSMC's attitude was to refuse, because the United States did not have the conditions to build factories, did not have a complete industrial chain, and the cost was very high.

But the U.S. has promised huge subsidies, and given that the U.S. is one of the world's largest semiconductor markets, building factories can better meet market demand and increase product flexibility. After building a factory in the United States, we can get more orders from American companies to further strengthen the competitiveness of the industry. Finally, at the end of 2022, TSMC's first 5nm chip factory was capped.

Could it be that TSMC went to the United States to build a factory really so smoothly?Apparently impossible. Due to the lack of abundant local talent, TSMC had to send engineers from its headquarters to work in the United States, but it was resisted by American labor unions.

They feel that TSMC does not intend to fulfill its promise of job security, and it is also disrespectful to their skill level. After such a fuss from the American labor union, TSMC had no choice but to postpone the mass production plan of the American factory from 2024 to 2025. TSMC has personally experienced the challenges of building factories in the United States, such as high costs, lack of labor, and incomplete industrial chains.

Not only that, the United States has set many additional conditions for chip subsidies, and it is not so easy to get funding from the United States.

The environment for building factories in the U.S. market is not ideal, and TSMC has no choice but to launch an alternative plan, that is, to invest in building factories in Japan. Japan also invited TSMC to build a factory, and TSMC agreed very happily, and Japan's subsidies were also given. According to news from TSMC, the Japanese factory will be put into production in the first quarter of next year at the earliest.

It is worth mentioning that the initial mass production planning time of TSMC's U.S. and Japanese factories is almost the same, and now the Japanese factories will be put into production earlier than the United States, indicating that Japan's production capacity will be on the right track earlier.

Samsung has also followed the old path of TSMC, which plans to invest 40 billion yen (about 2 billion yuan) in Japan, which will be completed within five years to build a cutting-edge chip packaging factory. For the U.S. factory, Samsung also said that the $17 billion investment plan to build a factory will be mass-produced in 2025.

At the beginning, Samsung also planned to start production in the United States in 2024. Increasing investment in Japan and postponing the construction of factories in the United States, Samsung and TSMC have woken up, they have seen the true face of the United States, and the United States does not regard them as its own, but only uses them to help the United States revitalize the localization of chips.

Otherwise, the United States will not ask for all kinds of core data and materials for no reason and set strict conditions for applying for subsidies. Samsung, who has woken up, TSMC wants to control its own destiny, and this time it is the turn of the United States to be anxious.

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