The Trump administration is reportedly in talks with major processor manufacturers to originate factories in the US, according to a chronicle fromThe Wall Avenue Journal.Whereas theJournal’ssources reference various “talks” between the administration and manufacturers, Intel reportedly has a more explicit plan to escape a plant that manufactures chips “securely” — playing on US fears of reliance on processor plants based overseas.
Trump’s chronicle on US manufacturing is abysmal, so expecting a carve of latest US processor foundries to pop up is a dangerous bet. Though he has boasted of achievements in the tech sector, many of these have been total whoppers, including a repeated lie about a “contemporary” Apple factory in Texas. However theJournal’schronicle suggests things is doubtless to be more excessive than a photo-op with the president. TSMC, which makes Apple’s A-sequence chips, has reportedly been talking to Apple and critical government agencies about building a factory in the US. And, according to theJournal, Intel is eager to participate. “We’re very excessive about this,” Intel VP Greg Slater toldWSJ.
Without more detail about these talks and plans, it’s reasonable to assume chipmakers are merely responding to the potentially-lucrative business of defense contracts. As theJournalpoints out, Intel CEO Bob Swan sent a letter to the Department of Defense on April 28th saying that “it is far in the greatest interest of the United States and of Intel” to detect operating a commercial chip foundry in the US.
US skepticism about the benefits of globalization may be riding high thanks to the COVID-19 pandemic, but moving tech manufacturing to the US isn’t as straightforward as having a change of heart; existing provide chain efficiencies from more than a decade of investment in overseas manufacturing can’t be easily reversed. Despite the fact that these talks turn into something real, don’t seek information from Apple’s chips to be made in the US any time soon.