Is Donald Trump’s White House giving up on trying to create a US national champion in chip manufacturing? And, if so, how can it guarantee a supply of the advanced semiconductors that are likely to play an increasingly important role in its economic and national security?
Those questions loomed large this week after TSMC, the Taiwanese chip manufacturer, promised to increase its investment in US manufacturing by $100bn to avoid punitive import tariffs.
A day later, the US president issued his latest threat to scrap the Biden administration’s Chips Act. The act’s subsidies were intended to bring more chip making to the US and have been of particular importance to Intel, which has manufacturing operations that are chronically uncompetitive.
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