TSMC to build US$12 billion chip plant in Arizona with US government support

Taiwan Semiconductor Manufacturing Co is locating its next major fabrication facility in the US, in a potential realignment of global trade

The move is a victory for the Trump administration, which has pushed for more hi-tech manufacturing to return to the US

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Published: 10:40am, 15 May 2020Updated: 10:39am, 15 May 2020

Taiwan Semiconductor Manufacturing Co is planning to build a US$12 billion chip plant in Arizona, a potential realignment of global trade designed to allay US concerns over supply chain security.

Taiwan’s largest company confirmed on Friday it is locating its next major fabrication facility in the US state, a victory for a Trump administration that has pushed for more hi-tech manufacturing to return to the US.

TSMC had negotiated a deal with the administration to manufacture semiconductors in the US to create jobs and produce sensitive components domestically for national security reasons, according to people familiar with the situation.

TSMC – the largest and most advanced maker of chips for other companies – had weighed everything from cost considerations to its global supply chain ahead of the decision.

Its factories, which are primarily located in Taiwan, produce important components designed by Apple and most of the largest semiconductor companies, including Qualcomm, Nvidia, Advanced Micro Devices and China’s Huawei Technologies.

That makes TSMC a crucial part of many electronic devices, such as smartphones, laptops, servers running the internet, and corporate and government computer networks.