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Largest Foreign Investment in US History: Chip Maker TSMC Boosts Arizona Facility Investment to $40 Billion

The Taiwan Semiconductor Manufacturing Company (TSMC) plans to allocate an additional $28 billion into a chip manufacturing facility in Arizona, ahead of a series of landmark incentives from the Biden administration to boost domestic semiconductor production.

TSMC’s CEO Lisa Su, along with US President Joe Biden and Apple CEO Tim Cook, is set to announce more funding to boost American chip production, as well as plans to build a second manufacturing facility in Arizona. The Taiwan-based chip maker is increasing its investment in Phoenix from $12 billion to $40 billion, marking the largest foreign direct investment in US history.

The move comes after the Biden administration in August signed into law the CHIPS and Science Act, which will provide numerous incentives for chip makers to bring their manufacturing capabilities to the US, ultimately avoiding a replay of disruptions that gripped global chip supply chains over the past two years.

Although the TSMC facility in Arizona hasn’t received any of the subsidies outlined in the CHIPS act yet, guidance surrounding companies’ eligibility criteria will be unveiled early in the new year. Nonetheless, the current Arizona facility, which is scheduled to become operational in 2024, will manufacture 5-nanometer chips, while the second plant will produce more sophisticated 3-nanometer chips come 2026. Combined, TSMC’s Arizona facilities will manufacture over 600,000 wafers annually, totalling about 4% of the company’s entire global output.

Aside from the tens of thousands of construction workers building the two plants, TSMC’s Arizona facilities will eventually create another 10,000 high-tech jobs, with 4,500 of the positions being directly employed through TSMC. Taiwan is the world’s leading maker of chips, but the White House has been ramping up efforts to regain dominance in global semiconductor production, particularly as China intensifies military action on the island to gain sovereignty.


Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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