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.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Taiwan Blocks TSMC From Making 2nm Chips in the US

Taiwan’s chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC) cannot produce its advanced 2-nanometer chips outside...

Tuesday, November 12, 2024, 07:06:53 AM

Global Semiconductor Shortage Hammers Auto Industry

The surge in popularity for passenger vehicles and pickup trucks has put increased pressure on...

Saturday, January 30, 2021, 04:01:00 PM

Sam Altman Wants To Raise Trillions For The Future Of AI

OpenAI CEO Sam Altman wants to transform the global semiconductor industry. The catch: he needs...

Friday, February 9, 2024, 10:38:00 AM

Finding Gold In Southeast Arizona – The Daily Dive feat Ian Klassen of GMV Minerals

Starting off The Daily Dive for 2021 is that of Ian Klassen, CEO of GMV...

Monday, January 4, 2021, 01:30:00 PM

Bitcoin Mining Boom Has Accelerated the Global Semiconductor Shortage

With the price of bitcoin continuously reaching new highs, some of the more obscure costs...

Wednesday, March 24, 2021, 04:16:00 PM