MediaTek is negotiating production of certain chips in the U.S. with TSMC in a bid to meet customer requirements for locally manufactured components. While the plan is still under evaluation, if MediaTek manages to place orders through TSMC's Fab 21 in Arizona, it will be the first non-American company to demand production of its chips at the site. While chips made by TSMC in the U.S. are more expensive than those fabbed in Taiwan, U.S. production may enable MediaTek to address certain customers and/or avoid potential tariffs.
Word of MediaTek's intentions comes from the company's Corporate Vice President JC Hsu, reports Nikkei. The plans target two specific categories: automotive parts and chips tied to more regulated or strategically sensitive applications. The move is said to comply with demands from American clients who favor domestic production for logistical and policy-related reasons. Hsu stressed that the deal has not been formally inked yet.
