Re:Senate Democrats Seek Suspension of TSMC Deal
by InTheArena on Tuesday May 26, 2020 @09:59AM
(#23311193)
TSMC has been used by Taiwan as a strategic - only we can do this- car by the Taiwanese government for a while. China started a effort to create a advanced foundry independently. The USA has global foundries and Intel. This is another effort.
TSMC was already loosing their monopoly.
Conjecture:
This new fab was announced the same day as restrictions on TSMC selling chips to Huawei, it's 2nd biggest customer.
Presumably behind closed door negotiations, TSMC made clear that if they were banned by us from selling chips to China, they'd just split the company into a "China branch" who breaks these US rules and a "USA branch" that follows US sanctions.
To preempt that, the US government offered a sweet deal to TSMC, to start a fab in the US with massive subsidies, on condition they didn't move any more tech to China.