TSMC expands modern chip manufacturing to Arizona

(MENAFN) In a significant development for the semiconductor industry, Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading chipmaker, has announced plans to commence manufacturing its most advanced products in Arizona starting from 2028. This strategic move underscores the White House's concerted efforts to localize semiconductor production and bolster domestic supply chains. TSMC is set to produce cutting-edge chips, boasting a precision of 2 nanometers, at a production facility currently under construction in Phoenix, Arizona. Notably, this marks an update to TSMC's previous plans, further solidifying its commitment to expanding operations in the United States.

The forthcoming production plant in Arizona represents TSMC's second manufacturing facility in the United States, with the first facility, also located in Arizona and announced in 2020, slated to commence production next year. As part of its revised strategy, TSMC has announced an increase in its total investment in the United States from USD40 billion to USD65 billion. This expanded investment will facilitate the construction of a third factory dedicated to producing chips utilizing 2 nanometer technology or more advanced iterations. The new facility is projected to become operational by 2030, further enhancing TSMC's manufacturing capabilities on US soil.

In collaboration with the US Department of Commerce, TSMC has disclosed plans for significant financial support from Washington, amounting to USD6.6 billion in grants and approximately USD5 billion in loans. This financial backing is extended under the auspices of the CHIP Act, legislation enacted in 2022 aimed at fortifying the US chip industry and reducing reliance on overseas manufacturing. The infusion of financial support underscores the strategic importance of semiconductor production in bolstering national security and economic resilience, while also signaling a concerted effort to foster innovation and technological leadership within the United States.

TSMC's decision to expand its advanced chip manufacturing capabilities in Arizona represents a pivotal step towards achieving greater semiconductor localization and enhancing the nation's competitiveness in the global tech landscape. By investing in state-of-the-art manufacturing infrastructure and fostering strategic partnerships with key stakeholders, TSMC and the US government aim to cultivate a robust and resilient semiconductor ecosystem, laying the groundwork for sustained growth and innovation in the years to come.



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