Taiwan and Arizona business groups agree to bring more chip industry to desert state • The Register

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The US city of Phoenix, Arizona is getting more semiconductor factories – if all goes according to plan set out yesterday by Taiwan economic development officials and an Arizona business group.

Memorandum of Understanding between Taiwan-U.S. Industrial Cooperation Promotion Bureau (TUSA) and Greater Phoenix Economic Council (GPEC) establishes cooperation platform and plans for product development and manufacturing new generation microelectronics. It will also bring together strategic partners and court-related industries to join in semiconductor entertainment and gaming.

TUSA is supported by the Ministry of Economic Affairs of Taiwan.

GPEC tweeted:

“The signing of the MoU encourages the two sides to move towards closer bilateral industrial cooperation, especially in the wake of Taiwan Semiconductor Manufacturing Company’s plan to build a $ 12 billion plant in Arizona,” he said. said Chih-Ching Yang, deputy general manager of industrial development. Bureau (BID), which attended the signing.

GPEC General Manager Chris Camacho said Reuters his organization would co-locate as many suppliers from TSMC and other related companies as possible in the region, and 40 companies are already considering investing in Arizona.

“We are unabashedly seeking to become the world’s leading destination for semiconductors and the semiconductor supply chain,” Camacho told Reuters.

In July, the semiconductor powerhouse Taiwan Semiconductor Manufacturing Co (TSMC) revealed that U.S. personnel had been trained in the five-nanometer technology in Taiwan in preparation for the Arizona facility to begin production in 2024. The announcement came with a warning that production in Arizona is a bit more expensive than Taiwan, and customers may see price increases as a result.

Arizona is currently – pardon the pun – a popular destination for chipmakers, as Intel recently committed $ 20 billion to grow its Intel Foundry business in the state.

The world is in the midst of a semiconductor shortage, brought on by growing demand for technology and exacerbated by COVID-19. Demand for chips shows no sign of stopping anytime soon, with World Semiconductor Trade Statistics (WSTS) predicting the global semiconductor market to rise from $ 440 billion to $ 589 billion by now 2025.

Earlier this week, Samsung called its aggressive investment in semiconductors a “survival strategy,” stressing how important it is for companies to stay competitive in the market or risk losing ground.

The elephant in the room for investors is that Arizona has a desert climate and semiconductor factories require a lot of water. In February, TSMC trucked water to its manufacturing plants in Taiwan as the country went through a drought.

On August 16, U.S. officials declared a water shortage for the Colorado River, which runs along the western border of Arizona before crossing the northwestern corner of the state when it reaches Lake Mead, the most large reservoir in the United States and a major source of water in Arizona. supply.

The edge reported last week that due to the drought, California, Nevada, Arizona and Mexico will experience mandatory water cuts from January 2022. Although factories generally recycle their water, the two at four million gallons (7.5 to 15 million liters) of water typically used in a semiconductor plant in one day is equivalent to daily use for between 13,600 and 27,400 Arizona residents. ®



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