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TSMC to build a $12 billion advanced semiconductor plant in Arizona with U.S. government support

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

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 U.S ., as part of its effort to reduce reliance on chipping factories in Asia. Located in Hsinchu, Taiwan, TSMC affords microchip components for many of the world’s largest semiconductor corporations and its U.S. purchasers include Apple and Qualcomm.

White House reportedly in talks with Intel, TSMC to build advanced chip foundries in the US

The plant, scheduled to start production of chippings in 2024, will enable TSMC’s American customers to fabricate their semiconductor makes domestically. 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 a month.

The U.S.-China trade war, national security concerns, geopolitical upheaval and the COVID-1 9 pandemic have all stressed the shortcomings of “il rely on” foundries pinpointed abroad and international supplying chains.

The U.S. government has reportedly been in talks with TSMC for months, though one sticking point for the company was the high cost of building a new foundry. TSMC chairman Mark Liu told the New York Times in October that the project works would require major gives because it is more expensive to operate a factory in the U.S. than in Taiwan.

In today’s announcement, TSMC said ” U.S. adoption of forward-looking investment policies to enable a globally competitive environment for a leading edge semiconductor technology operation in the U.S. will be crucial to the success of such projects .”

The company expects to spend about $12 billion between 2021 and 2029 on the project, with creation slated to begin next year.

TSMC once operates a foundry in Camas, Washington, and has blueprint middles in Austin, Texas and San Jose, California.

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