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TAIPEI / PALO ALTO, USA USA – Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker, has announced that it will build a state-of-the-art $ 12 billion chip factory in the US state of Arizona in a move aimed at addressing Washington’s concerns about supply chains and national security.
“This project is of critical and strategic importance to a vibrant and competitive American semiconductor ecosystem that enables leading US companies. To manufacture their state-of-the-art semiconductor products within the United States and benefit from the proximity of a foundry and ecosystem. of world-class semiconductors. ” TSMC said in a statement on Friday.
The announcement comes as the United States, which is struggling to contain the coronavirus outbreak, ramps up its rhetoric against China. Referring to the United States’ dependence on overseas supply chains, United States President Donald Trump said Thursday: “We shouldn’t have a supply chain, we should have them all in the United States.”
The planned facility will use TSMC’s 5-nanometer chip production technology, which is currently the most advanced in the world. TSMC is separately configured to begin production of 5nm chips at its facility in Tainan City, southern Taiwan, this quarter, to supply the next generation of flagship iPhone 5G. TSMC’s total spending on the Arizona project, including capital spending, will be approximately $ 12 billion from 2021 to 2029, the company said.
The Arizona plant will mark TSMC’s first chip production site in the US. USA In more than two decades. The company has only one US factory, in Washington state, which went online in 1998. Most of TSMC’s chip production is located in Taiwan, where the semiconductor titan has said it is more profitable and efficient than operate.
Sources close to TSMC said the coronavirus outbreak has caused the Trump administration to put more pressure on the company in hopes of attracting foreign investment and thereby boosting the economy ahead of the November presidential election. Washington has been urging TSMC to build an advanced chip plant on US soil since last year.
“Trump will definitely expect some key technology players, especially in chip production, to commit to significant investments in the United States to answer that ‘made in the United States’ call just before the election,” said Arisa Liu, an analyst at the Taiwan Economic Research Institute. The Nikkei Asian Review. “In the post-coronavirus era, it will be more urgent for the United States to regain crucial chip supply chains … The ultimate goal for the United States is to continue to take the leading technology and not let China catch up.”
Secretary of State Mike Pompeo applauded the move on Twitter and wrote: “The United States appreciates TSMC’s intention to invest $ 12 billion in the world’s most advanced 5 nanometer semiconductor manufacturing foundry. This agreement reinforces the national security of The United States at a time when China is trying to master cutting-edge technology and control critical industries. “
Meanwhile, Arizona Governor Doug Ducey said he was “incredibly proud” that his state has been chosen as the site for the new plant, adding that TSMC “chose Arizona because of our unbeatable business climate, a technology sector prosperous and easy access to an international supply chain. “
Construction of the plant is slated to begin in 2021, and production is slated to begin in 2024, the company said. It will have a planned capacity of 20,000 wafers per month and is expected to create more than 1,600 high-tech professional jobs directly and thousands of jobs indirectly in the semiconductor supply chain, the company said.
TSMC also has a $ 3 billion factory in the Chinese city of Nanjing to tackle the fast-growing local market. The factory went online in 2018 and produces 16-nanometer chips, which are approximately three generations behind the 5-nanometer version. The smaller the nanometer size, the more advanced the chip is.
TSMC President Mark Liu told investors in April that the company was “actively” evaluating a new plant in the US. USA, marking a change in his previously conservative attitude towards the idea.
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