With Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) pouring large funds into Arizona, the US is expected to see an improvement in its status to become the second-largest maker of advanced semiconductors in 2027, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report last week.
TrendForce estimates the US would account for a 21 percent share in the global advanced integrated circuit (IC) production market by 2027, sharply up from the current 9 percent, as TSMC is investing US$65 billion to build three wafer fabs in Arizona, the report said.
TrendForce defined the advanced chipmaking processes as the 7-nanometer process or more sophisticated technologies.
Photo: I-Hwa CHENG / AFP
The 3nm process is the latest technology TSMC has launched, with mass production in Tainan, while the chipmaker is developing the more sophisticated 2nm and even 1.4nm processes.
For Taiwan, its share of advanced IC processes in the global market is expected to fall to 54 percent in 2027 from the current 71 percent, although the country would retain the number one spot in 2027, the report said.
South Korea is likely to see its market share fall to 9 percent in 2027 from the current 11 percent, with its ranking expected to fall to third place from the current second, it said.
TSMC is building two advanced fabs in Arizona.
The first is scheduled to start mass production using its 4nm process in early next year, while the second is slated to mass-produce wafers using the 3nm and 2nm processes in 2028.
The company also plans to build a third fab in Arizona using the 2nm process or more advanced technology, with production slated to start by the end of 2030.
Ray Yang (楊瑞臨), an international strategy development consulting director at the government-sponsored Industrial Technology Research Institute (ITRI, 工業技術研究院), said after US president-elect Donald Trump returns to the White House in January, the US government is expected to further push for “Made in America” initiatives by cutting business taxes and raising tariffs to build a more comprehensive semiconductor ecosystem.
According to a projection made by the Boston Consulting Group, the US would triple its domestic semiconductor manufacturing capacity in 2032 compared with 2022, when the CHIPS and Science Act went into effect.
The consulting firm also projected capital expenditure in semiconductors in the US would account for more than one-quarter, or 28 percent, of the global total between next year and 2032.
Leading Taiwanese bicycle brands Giant Manufacturing Co (巨大機械) and Merida Industry Co (美利達工業) on Sunday said that they have adopted measures to mitigate the impact of the tariff policies of US President Donald Trump’s administration. The US announced at the beginning of this month that it would impose a 20 percent tariff on imported goods made in Taiwan, effective on Thursday last week. The tariff would be added to other pre-existing most-favored-nation duties and industry-specific trade remedy levy, which would bring the overall tariff on Taiwan-made bicycles to between 25.5 percent and 31 percent. However, Giant did not seem too perturbed by the
Foxconn Technology Co (鴻準精密), a metal casing supplier owned by Hon Hai Precision Industry Co (鴻海精密), yesterday announced plans to invest US$1 billion in the US over the next decade as part of its business transformation strategy. The Apple Inc supplier said in a statement that its board approved the investment on Thursday, as part of a transformation strategy focused on precision mold development, smart manufacturing, robotics and advanced automation. The strategy would have a strong emphasis on artificial intelligence (AI), the company added. The company said it aims to build a flexible, intelligent production ecosystem to boost competitiveness and sustainability. Foxconn
TARIFF CONCERNS: Semiconductor suppliers are tempering expectations for the traditionally strong third quarter, citing US tariff uncertainty and a stronger NT dollar Several Taiwanese semiconductor suppliers are taking a cautious view of the third quarter — typically a peak season for the industry — citing uncertainty over US tariffs and the stronger New Taiwan dollar. Smartphone chip designer MediaTek Inc (聯發科技) said that customers accelerated orders in the first half of the year to avoid potential tariffs threatened by US President Donald Trump’s administration. As a result, it anticipates weaker-than-usual peak-season demand in the third quarter. The US tariff plan, announced on April 2, initially proposed a 32 percent duty on Taiwanese goods. Its implementation was postponed by 90 days to July 9, then
AI SERVER DEMAND: ‘Overall industry demand continues to outpace supply and we are expanding capacity to meet it,’ the company’s chief executive officer said Hon Hai Precision Industry Co (鴻海精密) yesterday reported that net profit last quarter rose 27 percent from the same quarter last year on the back of demand for cloud services and high-performance computing products. Net profit surged to NT$44.36 billion (US$1.48 billion) from NT$35.04 billion a year earlier. On a quarterly basis, net profit grew 5 percent from NT$42.1 billion. Earnings per share expanded to NT$3.19 from NT$2.53 a year earlier and NT$3.03 in the first quarter. However, a sharp appreciation of the New Taiwan dollar since early May has weighed on the company’s performance, Hon Hai chief financial officer David Huang (黃德才)
RSS