Taiwan and Arizona economic groups agree to bring more chip industry to desert state
(2021/08/25)
- Reference: 1629865748
- News link: https://www.theregister.co.uk/2021/08/25/taiwan_and_arizona_economic_groups/
- Source link:
The US city of Phoenix, Arizona is getting more semiconductor factories – if all goes according to the plan lined up yesterday by Taiwan economic development officials and an Arizona economic group.
A Memorandum of Understanding (MOU) between the Taiwan-USA Industrial Cooperation Promotion Office (TUSA) and the Greater Phoenix Economic Council (GPEC) establishes a cooperation platform and plans for next-gen microelectronic product development and manufacturing. It will also match up strategic partners and court related industries to join in on the semiconductor fun and games.
TUSA is supported by Taiwan's Ministry of Economic Affairs.
[1]
GPEC tweeted:
Arizona's groundbreaking partnership with Taiwan will bring opportunity and economic success to both regions, and help shape the future industrial landscape. [2]#GreaterPHXtogether [3]#AZFreeToBe [4]https://t.co/1BacXFK5Ma — Greater Phoenix Economic Council (@GPEC) [5]August 24, 2021
"Signing of the MOU encourages both sides to move toward a tighter bilateral industrial cooperation, particularly on the heels of Taiwan Semiconductor Manufacturing Company's plan to build a $12 billion fab in Arizona," [6]said Chih-Ching Yang, deputy director general of the Industrial Development Bureau (IDB), who witnessed the signing.
GPEC chief exec Chris Camacho told Reuters his org would co-locate as many TSMC suppliers and other related companies to the area as possible, and 40 companies are already considering investing in Arizona.
[7]
[8]
"We're unapologetically pursuing becoming the top global destination for semiconductors and the semiconductor supply chain," Camacho [9]told Reuters .
In July, semiconductor powerhouse Taiwan Semiconductor Manufacturing Co (TSMC) [10]revealed staff from the USA trained on five-nanometer tech in Taiwan as preparation for Arizona facilities slated to start producing in 2024. The announcement came with a warning that producing in Arizona is a wee bit more expensive than Taiwan, and customers may see resulting price hikes.
[11]
Arizona is currently a - pardon the pun - hot destination for chipmakers, as Intel recently [12]committed US$20 billion to build its Intel Foundry business in the state.
The world is in the midst of a [13]semiconductor shortage , brought on by an increasing demand for tech and exacerbated by COVID-19. The demand for chips shows no signs of stopping soon, with World Semiconductor Trade Statistics (WSTS) predicting an increase in the worldwide semiconductor market from US$440 billion to US$589 billion by 2025.
Earlier this week, Samsung [14]referred to its aggressive semiconductor investment as a "survival strategy," highlighting how important it is for companies to keep competitive in the market or risk losing foothold.
[15]Intel, Qualcomm win deal to design 7nm silicon for US defense agencies
[16]Cranes soar over Lone Star State as Texas Instruments pushes to get new fabs online
[17]Will it bend? That is the question: Arm boffins boast of first flexible 32-bit chip
The elephant in the room for investors is that Arizona has a desert climate and semiconductor factories require a lot of water. In February, [18]TSMC trucked water in to its Taiwan fabrication plants as the country went through a drought.
On August 16, US officials declared a water shortage for the Colorado River, which runs along the western Arizona border before cutting across the Northwest corner of the state as it hits Lake Mead, the largest reservoir in the US and a major source of Arizona's water supply.
[19]
The Verge [20]reported last week that as a result of the drought, California, Nevada, Arizona and Mexico will experience mandatory water cuts starting in January 2022. Although fabs generally recycle their water, the two to four million gallons (7.5–15 million litres) of water typically used at a semiconductor factory in a day equates to daily usage for between 13,600 and 27,400 Arizona residents. ®
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[5] https://twitter.com/GPEC/status/1430191930126766082?ref_src=twsrc%5Etfw
[6] https://www.gpec.org/news/taiwan-and-arizona-forge-partnership-in-pursuit-of-new-business-opportunities/?utm_source=facebook&utm_medium=social&utm_content=page-post&utm_campaign=norcal&fbclid=IwAR2ch6YCUlgdNE9deerzO1EJ2UOVtQV2mBhtT1V6TcJRsYCNnk9hZzNFi04
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[9] https://www.reuters.com/world/us/arizona-group-inks-agreement-with-taiwan-aimed-attracting-more-chip-companies-2021-08-24/
[10] https://www.theregister.com/2021/07/16/tsmc_q2_2021_intel_globalfoundries_acquisition/
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[12] https://www.theregister.com/2021/04/23/intel_q1_2021_data_center_doldrums/
[13] https://www.theregister.com/2021/06/01/automakers_pc_chip_shortage_explained/
[14] https://www.theregister.com/2021/08/24/samsung_splunks_down_us200b_as/
[15] https://www.theregister.com/2021/08/24/intel_qualcomm_ramp_c/
[16] https://www.theregister.com/2021/07/22/texas_instruments_q2_2021/
[17] https://www.theregister.com/2021/07/21/plasticarm_flexible_chip/
[18] https://www.theregister.com/2021/02/24/tsmc_drought/
[19] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YSYU4KNPwYYeeG8pI@Nx9AAAAJE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[20] https://www.theverge.com/22628925/water-semiconductor-shortage-arizona-drought
[21] https://whitepapers.theregister.com/
A Memorandum of Understanding (MOU) between the Taiwan-USA Industrial Cooperation Promotion Office (TUSA) and the Greater Phoenix Economic Council (GPEC) establishes a cooperation platform and plans for next-gen microelectronic product development and manufacturing. It will also match up strategic partners and court related industries to join in on the semiconductor fun and games.
TUSA is supported by Taiwan's Ministry of Economic Affairs.
[1]
GPEC tweeted:
Arizona's groundbreaking partnership with Taiwan will bring opportunity and economic success to both regions, and help shape the future industrial landscape. [2]#GreaterPHXtogether [3]#AZFreeToBe [4]https://t.co/1BacXFK5Ma — Greater Phoenix Economic Council (@GPEC) [5]August 24, 2021
"Signing of the MOU encourages both sides to move toward a tighter bilateral industrial cooperation, particularly on the heels of Taiwan Semiconductor Manufacturing Company's plan to build a $12 billion fab in Arizona," [6]said Chih-Ching Yang, deputy director general of the Industrial Development Bureau (IDB), who witnessed the signing.
GPEC chief exec Chris Camacho told Reuters his org would co-locate as many TSMC suppliers and other related companies to the area as possible, and 40 companies are already considering investing in Arizona.
[7]
[8]
"We're unapologetically pursuing becoming the top global destination for semiconductors and the semiconductor supply chain," Camacho [9]told Reuters .
In July, semiconductor powerhouse Taiwan Semiconductor Manufacturing Co (TSMC) [10]revealed staff from the USA trained on five-nanometer tech in Taiwan as preparation for Arizona facilities slated to start producing in 2024. The announcement came with a warning that producing in Arizona is a wee bit more expensive than Taiwan, and customers may see resulting price hikes.
[11]
Arizona is currently a - pardon the pun - hot destination for chipmakers, as Intel recently [12]committed US$20 billion to build its Intel Foundry business in the state.
The world is in the midst of a [13]semiconductor shortage , brought on by an increasing demand for tech and exacerbated by COVID-19. The demand for chips shows no signs of stopping soon, with World Semiconductor Trade Statistics (WSTS) predicting an increase in the worldwide semiconductor market from US$440 billion to US$589 billion by 2025.
Earlier this week, Samsung [14]referred to its aggressive semiconductor investment as a "survival strategy," highlighting how important it is for companies to keep competitive in the market or risk losing foothold.
[15]Intel, Qualcomm win deal to design 7nm silicon for US defense agencies
[16]Cranes soar over Lone Star State as Texas Instruments pushes to get new fabs online
[17]Will it bend? That is the question: Arm boffins boast of first flexible 32-bit chip
The elephant in the room for investors is that Arizona has a desert climate and semiconductor factories require a lot of water. In February, [18]TSMC trucked water in to its Taiwan fabrication plants as the country went through a drought.
On August 16, US officials declared a water shortage for the Colorado River, which runs along the western Arizona border before cutting across the Northwest corner of the state as it hits Lake Mead, the largest reservoir in the US and a major source of Arizona's water supply.
[19]
The Verge [20]reported last week that as a result of the drought, California, Nevada, Arizona and Mexico will experience mandatory water cuts starting in January 2022. Although fabs generally recycle their water, the two to four million gallons (7.5–15 million litres) of water typically used at a semiconductor factory in a day equates to daily usage for between 13,600 and 27,400 Arizona residents. ®
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[2] https://twitter.com/hashtag/GreaterPHXtogether?src=hash&ref_src=twsrc%5Etfw
[3] https://twitter.com/hashtag/AZFreeToBe?src=hash&ref_src=twsrc%5Etfw
[4] https://t.co/1BacXFK5Ma
[5] https://twitter.com/GPEC/status/1430191930126766082?ref_src=twsrc%5Etfw
[6] https://www.gpec.org/news/taiwan-and-arizona-forge-partnership-in-pursuit-of-new-business-opportunities/?utm_source=facebook&utm_medium=social&utm_content=page-post&utm_campaign=norcal&fbclid=IwAR2ch6YCUlgdNE9deerzO1EJ2UOVtQV2mBhtT1V6TcJRsYCNnk9hZzNFi04
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[9] https://www.reuters.com/world/us/arizona-group-inks-agreement-with-taiwan-aimed-attracting-more-chip-companies-2021-08-24/
[10] https://www.theregister.com/2021/07/16/tsmc_q2_2021_intel_globalfoundries_acquisition/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YSYU4KNPwYYeeG8pI@Nx9AAAAJE&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2021/04/23/intel_q1_2021_data_center_doldrums/
[13] https://www.theregister.com/2021/06/01/automakers_pc_chip_shortage_explained/
[14] https://www.theregister.com/2021/08/24/samsung_splunks_down_us200b_as/
[15] https://www.theregister.com/2021/08/24/intel_qualcomm_ramp_c/
[16] https://www.theregister.com/2021/07/22/texas_instruments_q2_2021/
[17] https://www.theregister.com/2021/07/21/plasticarm_flexible_chip/
[18] https://www.theregister.com/2021/02/24/tsmc_drought/
[19] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YSYU4KNPwYYeeG8pI@Nx9AAAAJE&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[20] https://www.theverge.com/22628925/water-semiconductor-shortage-arizona-drought
[21] https://whitepapers.theregister.com/
Re: Good luck.
Wellyboot
>>>So whom wins<<<
Hard luck Arizona, it's the side with the most cash that always wins.
Re: Good luck.
Chris G
There is long history of litigation between California and Arizona over Colorado river water.
The first was in 1931, the last adjustment in 2006, so expect a new case soon.
See 'Arizona vs California.'
Re: Good luck.
Anonymous Coward
There's tons of these types of businesses in Arizona for a reason. It's one of the few places in the US that doesn't have any restrictions on water use. Sure the Colorado River's just about dry by the time it gets to Arizona, but businesses can take as much water as they want from the aquifer instead. As a result, some of the most water intensive crops (like nut trees) are grown there. Those can also suck up 2 million+ gallons of water per day.
the Greater Phoenix Economic Council
Pascal Monett
Its members need to be replaced by people with a functioning brain. When you live in a desert region without access to a water source you control, you do not invite an entire industry that cannot function without water.
That Arizona is stupid enough to jeopardize its water future is one thing, that the suits at TSMC think its a good idea is altogether another. How can they possibly believe that Arizona is going to be able to reliably supply water for the life of the plant ? Oh sure, they certainly got their juicy tax breaks, no doubt there, but those tax breaks won't amount to much when the plant has to shut down because no more water is coming down the pipes.
Why don't you also decide to put a gunpowder factory in the middle of a pine forest while you're at it ?
Après moi le déluge
Potemkine!
There's no water for people? What's the problem as long as I get my cut from my industrial pals?
Good luck.
As mentioned in TFA, the West coast is in the middle of a multi decade drout that has caused the shutting down of various hydroelectric dams for lack of water, has seen the Colorado river down to historic lows *and predicted to fall even farther*, and water rationing to begin for everyone along the river's route in order to make what's left last as long as possible. There are even stories about water being stolen in great amounts for farmers to quench their thirsty crops & illegal marijuana growers to maximize their yields. So for a desert state to make plans to install a water-guzzling industrial network that promises to suck down water like a thirsty sponge is just asking for trouble. What will they do when the Colorado river falls to such a low point that the southern states, especially the desert ones, can no longer manage to both provide adequate drinking water to their citizens much less the millions of gallons per day to the industries that call them home? Stop their residents from drinking tap water? Start trucking in bottled water by the billions each day & absorb the cost? Or will they have to tell said thirsty industries to stop being so thirsty? Because _that_ will go over _OH_ so well, won't it? California produces much of America's food & thus requires the water to feed us all; Arizona wants the water to power an industry that is effectively a nice-to-have but not a requirement-for-life. So whom wins in a contest for the water rights to a rapidly dwindling supply? There's talk of building more desalination plants along the West coast to try & refill the various reservors so that they can restart the hydroelectric dams, supply drinking & farming water to those whom need it, and put California back to pre-drout footing WRT agricultural output. Arizona should pay for a desalination plant or two (dozen) that are dedicated to supplying their state directly, building a pipeline to deliver that water, and _then_ they can support an industrial base that demands enough water each & every day to keep their residents from shriveling up like an icecream cone in a blast furnace...