Apple supplier TSMC to build multibillion-dollar chip plant in Arizona with Trump admin backing

In a potential realignment of global trade designed to allay U.S. concerns over supply chain security, Taiwan Semiconductor Manufacturing Co. (TSMC) is planning to build a multibillion-dollar chip plant in Arizona with the backing of the Trump administration.

Apple supplier TSMC to build multibillion-dollar chip plant in Arizona with Trump admin backing. Image: Apple's Arm-based A13 Bionic SoC
Apple’s ARM-based A13 Bionic SoC is fabricated by TSMC

Apple’s ARM-based A13 Bionic SoC is manufactured on TSMC’s 2nd generation 7nm N7P technology and contains 8.5 billion transistors.

TSMC is the first foundry to provide 7-nanometer production capabilities and the first to commercialize Extreme Ultraviolet (EUV) lithography technology in delivering customer products to market in high volume. As of 2018, TSMC employed 48,752 people worldwide.

Ian King and Debby Wu report for Bloomberg:

The Taiwanese company is negotiating a deal with the administration of President Donald Trump to manufacture semiconductors in the U.S. to create jobs and produce sensitive components domestically for national security reasons, according to people familiar with the situations. Talks have been progressing swiftly in recent days and an announcement could come as early as Friday, according to the people, who asked not to be identified because the deal is not public yet.

TSMC is the largest and most advanced maker of chips for other companies. Its factories, which are primarily located in Taiwan, produce important components designed by Apple Inc. and most of the largest semiconductor companies… An agreement would call for TSMC to build a plant in Arizona by 2023, according to the people. It’s unclear what type of support the project will get from the federal government or the state of Arizona.

A cutting-edge fab is expensive to build. TSMC spent NT$500 billion ($17 billion) to build an advanced facility in the southern Taiwanese city of Tainan that will churn out components for new iPhones this year. It plans another $16 billion in capital spending this year.

If the federal government provides cash for a U.S. plant, it’ll mark a shift in policy and rhetoric from a Republican administration. Trump’s White House has rarely supported such direct industrial intervention, favoring market dynamics. However, emerging trends may be forcing a reconsideration… Meanwhile, Trump has attacked international trade deals and tried to limit China’s access to semiconductor technology. A TSMC deal to bring high-skilled work to Arizona may help Trump’s re-election prospects this year.

MacDailyNews Take: COVID-19 will produce many paradigm shifts.


  1. “COVID-19 will produce many paradigm shifts.”

    Yeah, like central planning, where the government decides which corporations it wants to relocate in the U.S. and then pays the companies to move here. Of course, the government will take a stake in the company, and dictate much of its operations, too.

    Yep, bringing a bit of Chinese socialist market economy back with the manufacturing.


      1. Because nothing has been produced and they keep changing the goal. First it was to was going to produce outdated TVs then it was going to be a R&D faucility. It was going to employe 15,000 workers now it’s maybe 1000. Oh, and it hasn’t even hit the first benchmark yet.. 3 years into the agreement. Don’t forget all of the farmland the city had to plow under to build new water and sewer lines and now its just vacant space of gravel and dirt piles.

          1. A straight up tax subsidy by Wisconsin taxpayers to Foxconn. Not to mention the millions spent on infrastructure upgrades, environmental impacts, etc. Residents were forced from their homes by government officials claiming eminent domain. An utter farce perpetuated by possibly the worst governor in American at the time, Scott Walker, and fake president.

            Fake president, savant of poor dealmaking called it ““one of the great deals ever” that would restore “America’s industrial might.”



            1. As Samuel Johnson observed, “Patriotism is the last refuge of the scoundrel.” As every lawyer has heard, when you have the facts, pound the facts. When you have the law, pound the law. When you don’t have either, pound the table, wave the flag, and accuse your opponent of being unAmerican.

              Still waiting for you to point out a significant factual error in something I have posted.

            2. USER on Thursday, May 14, 2020 at 11:42 pm

              “Still waiting for you to point out a significant factual error in something I have posted.”

              Because you are a self righteous SERIAL LIAR I have pointed out hundreds of times your so called “factual error.”

              YOU DEFLECT.

              YOU DENY.


              OR, YOU SIMPLY IGNORE.

              “Still waiting for you point out” one Republican accomplishment in the last 3.5 years you FAKE REPUBLICAN…😡

            3. Well, up until February I could have admitted that they hadn’t tanked the economy and hadn’t caused tens of thousands of unnecessary American deaths.


    1. The beauty of democracy is that you have no such authority. The law does, and the law says you’re not only wrong, but you are an [insert any insult you wish].

  2. Re: ‘Apple supplier TSMC to build multibillion-dollar chip plant in Arizona…’
    With the PRC threatening an imminent military takeover of Taiwan, that would be a wise move.

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