WSJ Tech News Briefing – March 3, 2025
Hosted by The Wall Street Journal
1. TSMC Announces $100 Billion Investment in U.S. Chip Manufacturing
In a landmark announcement, Taiwan Semiconductor Manufacturing Company (TSMC) revealed plans to invest at least $100 billion in expanding its chip manufacturing facilities within the United States over the coming years. This initiative, unveiled earlier today in collaboration with President Donald Trump, signifies a robust commitment to bolstering the domestic semiconductor industry, which has seen significant outsourcing to Asian countries in recent decades.
TSMC's expansion strategy includes the construction of three new chip manufacturing plants, two chip packaging facilities, and a dedicated research and development center in Arizona. This substantial investment aims to enhance the U.S. capacity in semiconductor production, ensuring supply chain resilience and reducing reliance on foreign manufacturers.
Julie Cheng, reporting for the Wall Street Journal, highlighted the strategic importance of this move:
"TSMC's massive investment not only strengthens the U.S. semiconductor sector but also aligns with national interests to secure technological leadership and economic stability" ([00:40]).
This development is poised to create numerous high-skilled jobs and foster innovation within the U.S., positioning the country as a pivotal player in the global tech landscape.
2. Trial of Former Cognizant Executives Proceeds Amid Trump Administration Stance
In a significant legal development, two former executives of Cognizant Technology Solutions, Gordon Coburn and Stephen Schwartz, are set to go on trial for alleged foreign bribery charges in India. Initially charged in 2019 for their involvement in a $2 million bribery scheme, the case has garnered attention due to recent executive actions by President Trump.
Despite the Trump administration's executive order last month halting the initiation of new investigations or enforcement actions under the U.S. Foreign Corrupt Practices Act (FCPA), Coburn and Schwartz’s trial will proceed. Both executives have pleaded not guilty to the charges, maintaining their innocence as jury selection commences this Wednesday.
Julie Cheng provided an update on the legal proceedings:
"Even with the administration's directive to pause FCPA actions, the court is moving forward with the trial, underscoring the complexities of enforcing anti-corruption laws in multinational corporations" ([01:05]).
Neither the defense nor the Justice Department has provided comments, as efforts to reach out for statements were unsuccessful.
3. Microchip Technology Lays Off 2,000 Employees Amid Sales Decline
Microchip Technology Inc., a prominent player in the semiconductor industry, announced a significant workforce reduction affecting approximately 2,000 employees across its manufacturing and corporate operations. This decision comes in response to declining sales, with the company reporting net sales of about $1 billion in the most recent quarter—a 42% decrease compared to the same period last year.
The layoffs will impact facilities in Oregon, Colorado, and the Philippines, with the company expecting to incur $30 to $40 million in severance and benefits costs. This restructuring follows the company's previous announcement in December to close its Fab 2 facility in Tempe, Arizona, signaling ongoing efforts to streamline operations in the face of market challenges.
Julie Cheng emphasized the broader implications of these cuts:
"Microchip's reduction in workforce reflects the volatile nature of the semiconductor market and the urgent need for companies to adapt swiftly to changing demand dynamics" ([01:30]).
The company's strategic adjustments aim to stabilize its financial standing and navigate the current downturn in the tech sector.
Looking Ahead
For a more in-depth analysis of these developments and other pivotal stories in the tech world, tune in to tomorrow's Tech News Briefing podcast.
This summary encapsulates the key discussions and insights from the March 3, 2025, episode of WSJ Tech News Briefing. Stay informed with The Wall Street Journal for the latest in technology news and trends.