TSMC, the world’s largest contract chipmaker, has approved a capital injection of up to US$3.5 billion for its new factory in Arizona. The investment will be used to build a second manufacturing phase at the facility, which is expected to start producing chips in 2024.
The new investment is a significant boost for TSMC’s presence in the United States. The company has been under pressure from the US government to increase its manufacturing capacity in the country, as part of a broader effort to reduce reliance on foreign chipmakers.
TSMC’s Arizona factory is expected to create 13,000 jobs, including 4,500 under TSMC and the rest at suppliers. The factory will produce advanced 5-nanometer chips, which are used in a wide range of products, including smartphones, laptops, and data centers.
The capital injection is the latest in a series of investments that TSMC has made in Arizona. In December 2022, the company announced that it would invest US$40 billion in the Arizona factory, making it the largest foreign direct investment in Arizona history.
TSMC’s investment in Arizona is a major win for the state and the US chip industry. The new factory will help to secure the US’s supply of critical semiconductors and create thousands of high-paying jobs.
What Does This Mean for the Future of Chip Manufacturing?
TSMC’s investment in Arizona is a sign that the company is committed to expanding its manufacturing presence in the United States. This is a positive development for the US chip industry, as it will help to reduce reliance on foreign chipmakers.
The new factory is also expected to benefit the Arizona economy. The 13,000 jobs that it will create will provide a significant boost to the state’s economy.
Overall, TSMC’s investment in Arizona is a positive development for the US chip industry and the Arizona economy. The new factory will help to secure the US’s supply of critical semiconductors and create thousands of high-paying jobs.
