Taiwan Semiconductor Manufacturing Corporation (TSMC) stated on Tuesday that it will increase its planned investment in its Arizona factory in the United States from $10 billion to $40 billion. Vice President Joe Biden praised the initiative, which has become one of the biggest foreign investments in US history, after touring the TSMC factory in Arizona.
TSMC’s original $10 billion investment in the Arizona facility in the United States will be increased to $30 billion. By 2026, they also want to launch a second manufacturing facility.
Biden made his remarks in front of an American flag and a huge banner stating “A Future Made in America Phoenix, AZ” at a brand new plant.
In light of the supply chain problems that plagued the American economy early in Biden’s administration, the increased investment is a huge victory. By the year’s end of 2026, TSMC hopes to have opened a second factory, a manufacturing facility to make 3-nanometer chips.
When the two planned semiconductor fabrication sites are operational, TSMC chairman Mark Liu predicts yearly revenue of $10 billion, with customers realising annual sales of $40 billion from items employing chips created there.
Apple, NVIDIA, and AMD, three of TSMC’s biggest clients, all say they aim to get most of their future chips from TSMC’s American facilities.
Meanwhile, Apple has said that moving ahead, they would only use chips produced at a TSMC factory in the United States. Apple CEO Tim Cook made a statement during the ceremony, saying, “We cooperate with TSMC to build the semiconductors that help power our devices throughout the world.” We hope to do much more of this in the years to ahead as TSMC establishes itself more firmly in the United States.
After supply chain disruptions brought on by the pandemic led to shortages of chips for autos and other products, Vice President Biden has worked to increase semiconductor output.
The United States now only produces 12% of the world’s semiconductors, down from 37% twenty years ago.
In light of China’s increased military effort to enforce its sovereignty claims, fears of over-reliance on Taiwan have arisen due to the island’s preeminent position as a producer of chips used in technology ranging from cellphones and vehicles to fighter planes.
Subtly charming pop culture geek. Amateur analyst. Freelance tv buff. Coffee lover