(Reuters) — The Trump administration is in talks with semiconductor firms about constructing chip factories within the United States, representatives from two chipmakers mentioned on Sunday.

Intel is in discussions with the United States Department of Defense over enhancing home sources for microelectronics and associated expertise, Intel spokesman William Moss mentioned in an emailed assertion. “Intel is well positioned to work with the U.S. government to operate a U.S.-owned commercial foundry and supply a broad range of secure microelectronics”, the assertion added.

Taiwan Semiconductor Manufacturing Co (TSMC) however, has been in talks with the U.S. Department of Commerce about constructing a U.S. manufacturing facility however mentioned it has not made a last determination but. “We are actively evaluating all the suitable locations, including in the U.S., but there is no concrete plan yet”, TSMC spokeswoman Nina Kao mentioned in an announcement.

Intel Chief Executive Bob Swan wrote a letter to the Department of Defense in late March wherein he expressed the corporate’s willingness to construct a foundry — a time period used within the trade to reference a chip manufacturing facility — in partnership with the Pentagon. “This is more important than ever, given the uncertainty created by the current geopolitical environment”, Swan wrote within the letter dated March 30 and seen by Reuters on Sunday.

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It comes amid rising diplomatic tensions between the U.S. and China through the coronavirus outbreak, with either side buying and selling barbs over who’s guilty for the unfold of the illness after already being concerned in commerce tensions for nearly two years. “We currently think it is in the best interest of the United States and of Intel to explore how Intel could operate a commercial U.S. foundry to supply a broad range of microelectronics,” the letter from the Intel CEO added.

The Trump administration’s discussions with chipmakers have been reported earlier by the Wall Street Journal, with the report including that TSMC additionally has been speaking with Apple, one among its largest clients, about constructing a chip manufacturing facility within the United States. TSMC declined to touch upon the talks with the iPhone maker. The Journal had additionally reported that U.S. officers are taking a look at serving to South Korea’s Samsung, which has a chip manufacturing facility in Austin, Texas, to increase its contract-manufacturing operations within the United States. The U.S. Commerce Department, Samsung and Apple didn’t reply to requests for touch upon Sunday.