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TSMC’s new $100 billion U.S. chip investment could ease Taiwan tensions
TSMC (Taiwan Semiconductor Manufacturing Company) said it would invest another $100 billion in U.S.operations over the next ten years. This will go toward building three new fabrication plants, two advanced packaging facilities and an R&D center, the company said.
TSMC had already committed $65 billion to building three new chip fabrication facilities near Phoenix, Arizona. One of these fabs, which makes 4-nanometer process chips for smartphones, went into production last year; the other two, which will fab 2-nanometer process chips used in AI acceleration, remain under construction.
“This move underscores TSMC’s dedication to supporting its customers, including America’s leading AI and technology innovation companies such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm,” the company said in a press release. The U.S. government currently collects no tariffs on imports from Taiwan, but the Trump administration is said to be considering 100% tariffs on Taiwanese semiconductors and electronic devices containing the chips. TSMC’s investment promise could go a long way toward forestalling any such plans.
TSMC isn’t exactly a household name in the U.S., but it plays a huge and growing role in the global economy. As AI moves further into business operations and consumer products, the demand for the powerful and sophisticated graphics processing units (GPUs) that power AI models will continue to grow. U.S.-based Nvidia, which now supplies almost all of the GPUs used for generative AI models, relies heavily on TSMC to fabricate its most powerful chips.
If the AI industry’s heavy reliance on Nvidia is a problem, its reliance on TSMC is an even bigger issue. TSMC’s home country of Taiwan is only 90 miles from the Chinese mainland. The Communist Party of China (CPC) has long viewed Taiwan as a “breakaway province,” that will eventually have to be “reunited” with the Chinese homeland, even if by force. A Chinese takeover of Taiwan could cripple global semiconductor supply chains, as TSMC’s highly advanced fabrication processes rely on global partnerships, export-controlled technology, and proprietary expertise that may not be easily transferred. That’s why American lawmakers have been pushing for TSMC to move some of its chip manufacturing capability to the U.S.
Such diversification also lets TSMC resist coming under complete Chinese control if Taiwan would ever fall. The company started expanding its fabrication facilities outside of Taiwan in the late 1990s and early 2000s, but its offshoring efforts kicked into overdrive in the early 2020s as geopolitical tensions rose between the U.S. and China.
Reagan Institute gives Pentagon a “D” for defense modernization
Every year the Ronald Reagan Foundation issues a report card evaluating how well the Pentagon sources the nation’s best technologies. This year’s report finds that while the U.S. remains a global leader in technological innovation—particularly in artificial intelligence, which is playing a growing role in warfare—the Department of Defense (DOD) continues to struggle with modernization.
“The U.S. remains a global leader in innovation, setting technological standards worldwide and excelling in research, particularly in artificial intelligence,” the report states. But the report gives the Pentagon low marks (a “D”) for modernizing defense systems, with the authors citing concerns about the DOD’s inability when it comes to integrating new capabilities into production. And while commercial technology adoption has increased in select areas, such as space communications, progress in many other sectors remains stagnant.
To address these challenges, the DOD has launched accelerated contracting programs and established the Defense Innovation Unit (DIU) to source and fund promising defense-relevant technologies. But, according to the report, the Pentagon still struggles to acquire new technology quickly and efficiently—particularly software, including AI.
The report’s advisory board includes executives from defense contractors Palantir, Anduril, and Microsoft, as well as a number of venture capitalists with ties to the defense sector including Joe Lonsdale of 8VC, Raj Shah of Shield Capital, and Katherine Boyle of Andreessen Horowitz.
Ex-Google engineering VP Anna Patterson unveils her new AI training company
A wave of AI infrastructure companies has sprung up to help enterprises (especially ones without teams of PhDs) more easily build and deploy AI models. Anna Patterson, an ex-Google VP of Engineering and founder of Gradient Ventures, is now bringing her new AI training-focused infrastructure company out of stealth. The company, Ceramic.ai, is made up of nine engineers and has so far raised $12 million in seed funding from New Enterprise Associates and others.
Enterprises that decide to build AI infrastructure from scratch often run into problems and delays related to technical complexity, Patterson says. “With AI infrastructure there’s a real dichotomy between what is available to most enterprises, and what the biggest AI labs are using,” Patterson tells Fast Company. This can be especially taxing with training and fine-tuning models, which involves both science and art.
Ceramic’s training methods let models get the most out of the available training data and computing power (GPU time). The company organizes training data by topic before introducing it to the model. Ceramic can then help the enterprise customer train its model with its own proprietary domain knowledge.
Ceramic gets some of its computing power for training from the cloud GPU provider Lambda. In fact, Patterson says, Lambda has begun referring its prospective enterprise customers to Ceramic for model training. As model developers become more focused on training data to improve their models, many will see the benefit of using a dedicated model training platform developed by AI training experts.
More AI coverage from Fast Company:
- This DOGE staffer’s GitHub posts might help us understand how Elon Musk wants to bring AI into the government
- AI Chatbots have telltale quirks. Researchers can spot them with 97% accuracy
- Hollywood’s obsession with AI-enabled ‘perfection’ is making movies less human
- Curious about DeepSeek but worried about privacy? These apps let you use an LLM without the internet
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