US Gov Invests In TSMC And Samsung Semiconductors

US Gov invests in TSMC and Samsung semiconductors in bid to diversify global supply chain and strengthen economic interests

The semiconductor industry is extensive, competitive and undergoing significant transformation. As digital transformation, AI development and growing demand in an increasingly interconnected world lead to further semiconductor innovation, Governments and leading technology companies are ramping up investment. TSMC and Samsung are two of the companies at the forefront of this development, as the US government invests in both to enhance their manufacturing capabilities on home soil.

Taiwanese Semiconductor Manufacturing Company  

Founded in 1987, the Taiwan Semiconductor Manufacturing Company (TSMC) leads in manufacturing efficiency, with customers ranging from Apple to Intel. They’ve helped major tech brands maintain competitiveness with their efficient manufacturing and wafer production process. In Q4 2023 had a market share of nearly 60% in the foundry industry according to Counterpoint. The announcement they’ll receive US$6.6bn in grants to bolster US chip manufacturing comes after the establishment of their factory in Arizona back in 2022. 

TSMC prides itself on having a broad offering in its dedicated IC Foundry segment, with its logic technologies, speciality technologies and dedicated 3D Fabric systems. With foundry processes ranging from 3nm to 3-micron, the company maintains an unwavering commitment to building strong, in-house R&D capabilities. Their speciality technology addresses the demands of digital transformation, with ultra-low leakage core devices and 12-inch wafer production enhancing energy efficiency.

“The invaluable contributions of our suppliers have been instrumental in establishing TSMC as the industry leader it is today. Through collaboration and innovation, we have shown resilience and adaptability in navigating difficult times,” said TSMC CEO, Dr. C.C. Wei. “To maintain our leading position, we will continue to rely on the unwavering support of our suppliers to maintain stable quality performance, accelerate technology collaboration, and successfully implement advanced nodes in the future.”

Samsung Semiconductors

Samsung, the leading South Korean tech manufacturer established in 1938, is well-versed in navigating the ever-changing landscape of globalised tech. As consumer and industry demand grows for advanced semiconductor technologies so has their focus and commitment. The US government has invested in building a plant site with them in Taylor, Texas, due to the strength of their semiconductor development.

Their foundry has been a leading implementer of what they term ‘fab automation’, which handles customer requests with enhanced efficiency. Automated systems and streamlined scheduling process customer requests without interruptions, selecting optimal tools to quickly resolve issues. Their rerouting and auto-recovery mechanisms are continually monitored by engineers to ensure maximum efficiency. Samsung’s multi-project wafer services deliver unparalleled flexibility when it comes to design, IP validation and prototyping, allowing users to manage risks whilst exploring new possibilities.

“As a leader in the global semiconductor industry, Samsung has been a continuous innovator in semiconductor technology for the last 50 years,” CEO Kye Hyun Kyung said at the opening of the new semiconductor facility in Taylor, Texas. “We have gathered here today with one mission in mind: creating a new large-scale cluster for leading-edge semiconductor manufacturing in America.”

In addition to these developments, Samsung and TSMC have also developed the ability to produce 3-nm chips, surpassing Intel which remains at the 5-nm mark. Samsung and TSMC are reportedly aiming to take the 1.4-nm level to mass production by 2027/8, a move which would push further semiconductor innovation. The US Government's investment is driven by these achievements alongside a commitment to diversify the semiconductor supply chain and strengthen vital US economic interests. As semiconductor technology becomes integral to an increasing number of global industries, expect such large-scale investments to continue. 


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