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Former Google CEO: “We need to convince Samsung to make semiconductors in the US”

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Former Google CEO Eric Schmidt said, “The United States is using its political influence over the South Korean and Taiwanese governments to persuade global semiconductor companies Samsung Electronics and TSMC to establish partnerships with American semiconductor designers and build cutting-edge semiconductors in the United States. must,” he insisted.

Former CEO Schmidt said this while proposing a policy direction for the US to win the US-China semiconductor competition through an article in the Wall Street Journal (WSJ) on the 20th (local time).

“Korea and Taiwan depend on the security promises of the US military,” Schmidt said.

He added, “Samsung Electronics and TSMC will be able to persuade companies that increasing semiconductor production in the US is also beneficial to companies,” he added, referring to the exercise of influence on the Korean and Taiwanese governments and tax benefits and subsidies from the United States.

In fact, Samsung Electronics is pushing for a $17 billion foundry (semiconductor consignment production) plant in Texas, USA. In addition, US President Joe Biden places such importance on semiconductors that he toured Samsung Electronics’ Pyeongtaek campus as his first itinerary during his visit to Korea last month.

“TSMC makes 92% of the advanced semiconductors needed for smartphones, laptops, and ballistic missiles,” Schmidt said.

He continued, “If Taiwan’s semiconductor production capacity does not work or falls into China’s hands, the US technology sector will be devastated.” .

The US has prepared an investment bill worth 50 billion dollars (about 65 trillion won) to keep China in check in the semiconductor sector, but it has not yet crossed the threshold of Congress. Even if Congress passes the bill, it’s only one-third of China’s government spending.

China is expected to surpass Taiwan as the world’s largest semiconductor manufacturing country by 2025 at the earliest. Schmidt explains that China is already making more than half of the world’s circuit boards (PCBs).

In addition, 70% of the world’s silicon production, 80% tungsten, and 97% gallium, which are essential for semiconductor manufacturing, are produced in China.

“If China continues to advance its advantage across the semiconductor supply chain, it will make a fundamental technological breakthrough that the United States cannot compete with,” Schmidt said.

Schmidt also advised that in order to win the semiconductor competition, we should focus on high-tech semiconductor production while strengthening the link between R&D and production.

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I am a contributor to Advancetec.co.uk. I am fascinated by technology overall, especially crypto and it's potential to disrupt the global financial system. But until that future comes, I am perfectly content immersing myself in gaming, movies, gadgets, and all of the other wonders of the modern world.