Taiwan Semiconductor Manufacturing Co., the world’s largest contract semiconductor foundry, announced today that it is planning to build an advanced Arizona chip foundry with the support of the state and the United States government.
The announcement follows a report by the Wall Street Journal earlier this week that White House officials have had talks with TSMC and Intel about building foundries in the United States to reduce reliance on chip factories in Asia. TSMC, based in Hsinchu, Taiwan, supplies chip components for many of the world’s largest semiconductor companies. His US customers include Apple and Qualcomm.
The facility, which is slated to begin production in 2024, enables TSMC̵
The US-China trade war, national security concerns, geopolitical unrest, and the COVID-19 pandemic have highlighted the shortcomings in dependence on overseas foundries and international supply chains.
The U.S. government has been reported to have been in talks with TSMC for months, although the 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 would require substantial subsidies because operating a US factory in Taiwan is more expensive.
In today’s announcement, TSMC said: “United States Adopting a forward-looking investment policy to create a globally competitive environment for a leading semiconductor technology company in the United States will be critical to the success of this project. “
The company expects to spend approximately $ 12 billion on the project between 2021 and 2029. Construction is scheduled to start next year.
TSMC already operates a foundry in Camas, Washington and has design centers in Austin, Texas and San Jose, California.