TSMC boosts its Arizona chipmaking investment to $40 billion ahead of Biden’s visit


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CNN Business

A Taiwanese semiconductor manufacturer is increasing its investment in the United States, announcing on Tuesday that it will build a second semiconductor factory in Arizona, raising its investment from $12 billion to $40 billion. The move is “one of the largest foreign direct investments in U.S. history,” the company said.

of TSMC President Joe Biden has imposed a wide range of restrictions on the sale of advanced chips and chip-making equipment to Chinese companies amid rising tensions between Washington and Beijing over chips.

Biden visited the manufacturer’s site in Phoenix and talked about bringing jobs and investment to the state. Other lawmakers and business leaders attended the event, including Apple CEO Tim Cook.

“As many of you know, we work with TSMC to make the chips that help power our products around the world, and we look forward to expanding this work in the coming years as TSMC builds new and deeper roots in the U.S.,” Cook said during the event, along with the opening of a new facility that will house Apple’s own silicon chips. “Made in the USA” can be proudly branded.

TSMC previously announced plans to build a $12 billion facility in Arizona that will eventually produce 3-nanometer chips, TSMC’s most advanced technology. Between the two factories, thousands of “high-paying high-tech jobs” will be added to the state and 600,000 wafers will be produced annually, the company said.

TSMC makes an estimated 90% of the world’s super-advanced computer chips, supplying tech giants including Apple.

(AAPL)
and Qualcomm

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.

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Chips are an essential part of everything from smartphones to washing machines – but are difficult to manufacture due to the high cost of development and the amount of know-how required, meaning much of production is concentrated among a few suppliers.

The White House is touting new investments as a direct result of Biden’s economic plan, including $200 billion. Chips and the Law of Science. Since the law was passed this summer, Biden has been visiting communities where companies like TSMC and Intel have announced new investments.

“It’s more workers in these big factories, but it also means more opportunities for suppliers and contractors, better-paying construction jobs, opportunities for small and medium-sized manufacturers and suppliers,” National Economic Council Director Brian Deese told reporters Monday. . “That means economic opportunity for communities that have often been left behind in economic cycles, including traditional energy communities that have powered our nation for generations and tribal nations.”

Global chip shortage First appeared at the beginning of the epidemic, It upended supply chains and changed consumer shopping patterns. Automakers cut back on orders for the chips, while tech companies, whose products were boosted by lock-in life, snapped up as many as they could.

The facility, which Biden will visit Tuesday in Phoenix, will begin producing chips in 2024. The new facility will begin production in 2026.

– CNN’s Nikki Carvajal, Wayne Chang and Diksha Madhok contributed to this report.

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