Key Takeaways
Taiwanese Semiconductor Manufacturing Co. CEO C.C. Wei has revealed that it is unlikely its U.S. plant will get the most advanced chip technology before its factories in Taiwan—citing issues with construction regulations and requirements.
The comments highlight Big Tech’s criticism of the challenging regulatory environment in the U.S., which they claim is impeding the efficiency of building new infrastructure.
During an event at National Taiwan University, TSMC CEO Wei said building its new factory in Arizona had taken more than double the time it would have taken in Taiwan, Reuters reported.
“Every step requires a permit, and after the permit is approved, it takes at least twice as long as in Taiwan,” Wei said.
He added that it would be difficult for the chipmaker to use its latest technology in the country before Taiwan.
TSMC, the world’s biggest chip company, said that most of its chip manufacturing would remain in Taiwan.
The recent comments raise concerns for U.S. domestic manufacturing.
The 2022 Chips Act , introduced by President Joe Biden, was designed to reduce the country’s reliance on advanced chips produced in China and elsewhere, incentivizing more manufacturing on domestic soil.
According to the Semiconductor Industry Association, the U.S. share of semiconductor manufacturing fell from 37 percent in 1990 to 12 percent in 2020.
This decline highlights a growing vulnerability in the U.S. supply chain at the time as semiconductors became critical to national security and technological competitiveness.
Major semiconductor manufacturers, including Intel, TSMC, and Samsung, have responded to the act by announcing significant investments in U.S.-based facilities.
Several prominent technology leaders have voiced concerns about the regulatory environment in the U.S.
In an interview with Bloomberg, OpenAI CEO Sam Altman said he deeply agreed with President-elect Donald Trump on “how difficult it has become to build things in the U.S.”
“Power plants, data centers, any of that kind of stuff,” he said.
The OpenAI CEO said that the “bureaucratic cruft” that piles up was not helpful to the country and its future goals.
On Jan. 15, Chris Kubasik, CEO of defense firm L3Harris Technologies, posted a letter to Department of Government Efficiency (DOGE) leaders Elon Musk and Vivek Ramaswamy criticizing the Biden administration’s bureaucratic processes.
Kubasik said the defense acquisition system is “slow and bureaucratic and does not provide our warfighters with new capabilities at the speed of relevance to the threats they are facing.”
He added that the existing structure “stifles innovation and discourages risk-taking.”
TSMC rival Samsung is reportedly planning to produce 2nm and 3nm chips by 2026 in the U.S. as it continues to build its new advanced semiconductor factory in Texas.
This will put the company in head-to-head domestic competition with TSMC, which is also on track to produce 2nm chips at its Arizona foundry by next year.
In April 2024, Samsung announced it would invest around $45 billion in building and expanding its Texas facilities up to 2030.
The announcement came after a $6.4 billion grant to the South Korean company by the U.S. Chips Act.
According to a new report , the company plans to produce 2nm chips at its new plant—the most advanced semiconductor yet.
Samsung will be looking to play catch up with TSMC, which is currently building its third advanced chip factory in Arizona.
TSMC is already making 4nm chips in its Arizona plant but aims to roll out next-generation semiconductors by the beginning of 2026.
Samsung is hoping to gain a competitive edge against TSMC through its “one-stop shop” style facility, which integrates memory chips, foundry, and chip packaging.
The chip manufacturer claimed it can create AI chips up to 20% faster.
Samsung will also reportedly apply Gate All Around (GAA) technology to develop 2nm and 3nm chips; this architecture design offers stronger control over the current flowing through the channel, significantly reducing leakage and improving efficiency.
TSMC is still aiming to use its previous Extreme Ultraviolet technology to create its 3nm chips but will switch to GAA for its 2nm deployment, the report stated.