Taiwan Semiconductor Manufacturing Co., the world’s largest contract semiconductor foundry, today announced plans to build a state-of-the-art chip foundry in Arizona with state and federal government support.
The announcement follows a Wall Street Journal report earlier this week that White House officials were in talks with TSMC and Intel to build smelters in the United States as part of its efforts to reduce dependency with regard to chip factories in Asia. Based in Hsinchu, Taiwan, TSMC supplies chip components to many of the world’s largest semiconductor companies and their American customers, including Apple and Qualcomm.
The plant, which is slated to start up for chip production in 2024, will enable US customers of TSMC to manufacture their semiconductor products nationally. It will use the company’s 5 nanometer technology and is expected to create 1,600 jobs and have the capacity to produce 20,000 slices per month.
The US-China trade war, national security concerns, geopolitical unrest and the COVID-19 pandemic have all underscored the lack of use of foundries abroad and international supply chains.
The United States government has been in talks with TSMC for months, although one sticking point for the company is the high cost of building a new foundry. TSMC President Mark Liu told the New York Times in October that the project would require significant subsidies because operating a plant in the United States was more expensive than operating in Taiwan.
In today’s announcement, TSMC said: Adopting forward-looking investment policies to enable a globally competitive environment for state-of-the-art semiconductor technology operation United will be crucial for the success of this project. “
The company plans to spend about $ 12 billion between 2021 and 2029 on the project, and construction is expected to start next year.
TSMC already operates a foundry in Camas, Washington, and has design centers in Austin, Texas and San Jose, California.