TSMC's Ariz. Chip Fab Could Boost US Info Tech Leadership, Says AEI's Swanson

Apple’s announcement this week it's moving away from Intel microprocessors in Mac computers by year-end, switching to its own processors used in the iPhone and iPad (see report, June 23), could be part of a larger shift in information technology leadership, blogged Bret Swanson, American Enterprise Institute visiting fellow. Taiwan Semiconductor Manufacturing Corp. -- the largest contract manufacturer of chips for “fabless” semiconductor firms, such as Apple, Amazon, Qualcomm and Nvidia -- announced plans to build a $12 billion chip fab in Arizona, which could help alleviate a supply-chain worry: overdependence on Taiwan for chip manufacturing, Swanson said Wednesday. Though the U.S. is home to tech firms that design 65% of the world’s fabless chip volume, it has 10% of worldwide foundry capacity for manufacturing, he said. TSMC was first to reach the 7 nanometer process threshold, while Intel’s similar effort is reportedly delayed. Intel has an additional challenge: Apple and Amazon are using the alternative ARM architecture, not Intel’s x86, the dominant desktop and server architecture since the late 1970s, Swanson noted. TSMC’s Arizona investment provides not only “supply-chain resilience but also an overall boost to America’s bleeding-edge info-tech leadership,” he said. An Intel spokesperson emailed Wednesday that its 7-nanometer process "remains on track" with first products due by the end of 2021. On Apple's decision to move to its own processors, she said: "Apple is a customer across several areas of business, and we will continue to support them. Intel remains focused on delivering the most advanced PC experiences and a wide range of technology choices that redefine computing. We believe Intel-powered PCs -- like those based on our forthcoming Tiger Lake mobile platform -- provide global customers the best experience in the areas they value most, as well as the most open platform for developers, both today and into the future."