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US Semiconductor Manufacturers Eye Outsourcing Chip Production

While microchip production has slowed down US automobile production in the last few months, some semiconductor manufacturing companies are eyeing the outsourcing of some chip production to Asian companies, at least in the short term.

Intel, one of the US’s largest manufacturers has been in talks with Taiwan Semiconductor Manufacturing Co and Samsung in recent weeks. Delays in production due to the ongoing pandemic, coupled with increased demand for microchips as a whole, have put some US semiconductor companies in a bind when it comes to keeping up with demand.

TSMC has stated that they plan on opening a new facility by end of 2021 that could serve as a hub for Intel’s potential outsourcing. While Intel has outsourced low end microchip production before, it has always kept its high end manufacturing in-house. With increased demand globally for microchips, companies like Intel and AMD will likely need to take swift action in outsourcing some production to Asian hubs to keep up a balanced supply and demand.

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