TSMC to build a $12 billion advanced semiconductor plant in Arizona

TSMC to build a $12 billion advanced semiconductor plant in Arizona

Taiwan Semiconductor Manufacturing Co., the world’s largest contracted semiconductor foundry, said today that it plans to build an advanced chip foundry in Arizona with support from the state and federal government of the United States.

The announcement follows a Wall Street Journal report earlier this week that White House officials were in talks with TSMC and Intel to build foundries in the United States as part of its effort to reduce dependence on chip factories. in Asia. Headquartered in Hsinchu, Taiwan, TSMC supplies chip components to many of the world’s largest semiconductor companies and its U.S. customers include Apple and Qualcomm.

The plant, which is expected to begin chip production in 2024, will allow TSMC’s American customers to manufacture their semiconductor products on the domestic market. It will use the company’s 5-nanometer technology and is expected to create 1,600 jobs and have the capacity to produce 20,000 wafers per month.

The US-China trade war, national security concerns, geopolitical unrest and the COVID-19 pandemic have all highlighted the shortcomings of relying on foundries located abroad and international supply chains.

The United States government has reportedly discussed with TSMC for months, although a critical point for the company has been the high cost of building a new foundry. TSMC President Mark Liu told the New York Times in October that the project would require major subsidies because it is more expensive to run a factory in the United States in Taiwan.

In today’s announcement, TSMC said “The United States adopting forward-looking investment policies to enable a globally competitive environment for a state-of-the-art semiconductor technology operation in the United States will be crucial to the success of this project. ”

The company plans to spend approximately $ 12 billion between 2021 and 2029 on the project, with construction expected for next year.

TSMC already operates a foundry in Camas, Washington, and has design centers in Austin, Texas and San Jose, California.

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