Last week, the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), announced last week that is expanding its manufacturing footprint within the U.S. The new facility will be built in Arizona, and TSMC says it received support for the project from the U.S. federal government as well as the State of Arizona.
The chip fabrication plant will use TSMC’s 5-nanometer process technology and be capable of producing 20,000 semiconductor wafers per month. Over 1,600 jobs are expected to be created directly by the construction project. The company plans to commence construction next year, with production starting in 2024. The total cost including capital expenditures is estimated to be approximately $12 billion, spread out between 2021 and 2029.
TSMC already has a presence in the U.S., including another manufacturing facility in Washington that it operates through wholly owned subsidiary WaferTech. The new Arizona facility will be TSMC’s second manufacturing plant in the U.S. The company also has design centers in Texas and California.
Apple is easily TSMC’s most prominent U.S. customer; TSMC produces the Cupertino tech giant’s A-series of chips that power iOS devices. Meanwhile, the Trump administration has been pushing for chipmakers to build new chip factories in the U.S., according to a recent report from The Wall Street Journal. In other words, the TSMC news could be interpreted as a win for the Trump administration.
MacDailyNews Take: Good news for the U.S. and Arizona, in particular.