Home Americas Taiwan chip maker to build $12bn plant in the US

Taiwan chip maker to build $12bn plant in the US

Taiwan Semiconductor Manufacturing Corporation
Photo: TSMC

Taiwan Semiconductor Manufacturing Corporation (TSMC) has announced it would invest $12 billion to build and operate an advanced semiconductor facility in the United States with the mutual understanding and commitment to support from the US federal government and the state of Arizona.

This facility will utilize TSMC’s 5-nanometer technology for semiconductor wafer fabrication, have a 20,000 semiconductor wafer per month capacity, and create over 1,600 high-tech professional jobs directly.

The chips made in the new plant will power everything from artificial intelligence to 5G base stations to F-35s.

The deal is seen as a win for the US government, which has emphasized that China is competing to dominate cutting-edge technology and control critical industries. The TSMC facility in Arizona will increase US economic independence, and increase its competitiveness in high-tech manufacturing.

Construction is planned to start in 2021 with production targeted to begin in 2024. TSMC’s total spending on this project, including capital expenditure, will be approximately $12 billion from 2021 to 2029.

“This historic deal also strengthens our relationship with Taiwan, a vibrant democracy and force for good in the world,” the US State Department said in a statement.

TSMC said the US facility would enable it to better support its customers and partners, in addition to giving it more opportunities to attract global talents.

“This project is of critical, strategic importance to a vibrant and competitive US semiconductor ecosystem that enables leading US companies to fabricate their cutting-edge semiconductor products within the United States and benefit from the proximity of a world-class semiconductor foundry and ecosystem,” TSMC said.