TSMC said it will accelerate its production capacity in the United States and called on the mainland to ensure the supply of rare earths, otherwise the production capacity would be paralyzed!
CEO of TSMC, Wei Chieh-chia, recently stated that TSMC has invested an unprecedented 16.5 billion US dollars in Arizona, USA, to build three wafer plants, two advanced packaging plants, and a research and development center. The production lines for this year and the next two years have already been fully booked.
However, TSMC's current inventory of rare earths is only enough for 30 days. In its supply chain risk assessment report submitted to the White House, it clearly mentioned the "geographic concentration risk of key mineral supplies" and recommended that the U.S. establish a stable cooperation mechanism with major suppliers. This is actually a subtle appeal - hoping that the mainland can continue to guarantee its raw material supply.
On one hand, building factories overseas and responding to U.S. industrial policies, and on the other hand, relying on the mainland's rare earth processing capabilities, TSMC seems to be dreaming. However, since the North American market contributes 70% of TSMC's total revenue, this is also the fundamental reason why TSMC is willing to invest heavily in expanding production in the United States.
Rare earth elements play a key role in semiconductor manufacturing, especially in chip production equipment such as lithography systems. China has strengthened control over the export of rare earth minerals, requiring any goods containing these materials to obtain approval.
How to solve the problem of rare earth shortages? The author suggests that TSMC could buy a large number of chips and lithography machines from the mainland, then extract rare earths from them, and produce them. This way, a perfect cycle can be formed.
Original: www.toutiao.com/article/1846829216214088/
Statement: The article represents the views of the author himself.