tsmc and intel join forces to boost us chip manufacturing
United States, Monday, 16 December 2024.
tsmc’s US division has teamed up with Intel in a significant collaboration aimed at advancing their manufacturing capabilities. This partnership not only seeks to enhance Intel’s production technology but also allows tsmc to strengthen its presence in the US market. Weekly meetings between the companies underline their strong relationship, with tsmc playing a key role in training Intel’s teams. The collaboration comes at a time when both companies are facing challenges, including delays in fully ramping up capacity at new Arizona facilities. Despite these hurdles, tsmc remains a leader in advanced chip production, while Intel is navigating operational crises and focusing on securing scarce resources in the US chip industry. The partnership highlights the ongoing competition for talent and resources in the semiconductor sector as both firms aim to expand their influence and capabilities in the market.
Strategic weekly collaboration
TSMC’s US division has established a robust working relationship with Intel, marked by weekly meetings to enhance manufacturing capabilities [1]. Rick Cassidy, president of TSMC’s US division, revealed that the collaboration includes providing training for Intel’s advanced technologies, with Intel expressing satisfaction with TSMC’s contributions [1]. This partnership emerges as both companies develop major fabrication facilities in Chandler, Arizona, though both have experienced delays in reaching full production capacity [1].
Workforce development challenges
Both companies face significant talent acquisition hurdles in the US semiconductor sector [1]. TSMC has implemented a comprehensive strategy, sending 600 engineers to Taiwan for training and deploying Taiwanese experts on three-year assignments [1]. The company is actively collaborating with Arizona State University, which has established a dedicated ‘TSMC Day’ to support recruitment efforts [1]. TSMC’s Arizona operations plan to employ 6,000 workers across three facilities [1].
Industry growth and talent demands
The semiconductor industry is experiencing unprecedented growth, with market value projected to reach US$1 trillion by 2030 [4]. The sector anticipates 16% growth in 2024 and 12% in 2025 [4]. In the US specifically, the Semiconductor Industry Association projects 115,000 new jobs by 2030, with a potential shortfall of 67,000 positions [4]. This talent gap presents a critical challenge for both TSMC and Intel as they expand their US operations.