Taiwan news reports say TSMC's suppliers will follow the company as it expands in the US. TSMC pledged $100 billion to its Arizona plants in March. But TSMC isn't producing much there currently. So, suppliers don't have a big reason to open US offices, even considering tariffs.
It might take TSMC up to 10 years to build a US supply chain as strong as what it has in Taiwan and China. The Taiwan government spoke with some chemical suppliers about it. They decided TSMC's production volume right now doesn't justify the cost of setting up in the US. They believe it will take seven or eight years to establish fully.
However, if TSMC reaches the production levels it's aiming for, most of its suppliers will likely move to the US. This suggests TSMC may not have asked Intel's suppliers for help, which is a bit surprising since many of them should have similar chemicals and materials as TSMC's Taiwan suppliers.
Maybe Intel's suppliers didn't offer prices TSMC thinks are competitive enough. Regardless, there will probably be more competition for chip-making materials suppliers in the future if TSMC grows its plants the way it intends to.
It might take TSMC up to 10 years to build a US supply chain as strong as what it has in Taiwan and China. The Taiwan government spoke with some chemical suppliers about it. They decided TSMC's production volume right now doesn't justify the cost of setting up in the US. They believe it will take seven or eight years to establish fully.
However, if TSMC reaches the production levels it's aiming for, most of its suppliers will likely move to the US. This suggests TSMC may not have asked Intel's suppliers for help, which is a bit surprising since many of them should have similar chemicals and materials as TSMC's Taiwan suppliers.
Maybe Intel's suppliers didn't offer prices TSMC thinks are competitive enough. Regardless, there will probably be more competition for chip-making materials suppliers in the future if TSMC grows its plants the way it intends to.
