Sources have told DigiTimes the US is putting TSMC under pressure for its plans to expand their operation in China as they plan to expand their facilities there. TSMC is the world’s largest foundry and is the backbone for many in the silicon industry that are fabless. This includes customers from around the globe including China and the US. TSMC currently has operations in both regions with facilities in Nanjing and another close to Shanghai. TSMC plans to expand these locations but resistance from the US seems to be stalling this decision.
It is currently uncertain if the resistance from the US is from the government or from US-based customers (who may be under government pressure as well) or a mix of both. It can be recalled that TSMC is building a new plant in Arizona with more fabs planned in other states. The United States has been increasingly on-alert about the situation between China and Taiwan and TSMC expanding their operations in China and aids the US in possibly denying China access to leading silicon development technology and while also protecting TSMC from potential issues once China decides to take action against Taiwan as the political tension between the China and Taiwan has become further strained.
US chipmakers have went on record to state that this is one of the biggest issue threatening western customers if they grow too dependent on TSMC. One of TSMC’s most notable customers is AMD and Apple.