TSMC to put USD 12 bln into building 5 nm chip plant in Arizona

Taiwan Semiconductor Manufacturing (TSMC) has announced it is ready to put USD 12 billion into a chip factory in the US. The factory would come to Arizona, where Intel also has plants. With support from both federal and state government, construction will begin next year with production targeted for 2024. TSMC explained that it will use its 5-nanometer technology and produce 20,000 semiconductor wafer per month. The TSMC statement comes after the US government recently made it clear it wants to promote more tech self-sufficiency. 

TSMC said the factory will create over 1,600 high-tech professional jobs directly and thousands of indirect jobs. TSMC also operates a fab in Camas, Washington and design centres in both Austin, Texas, and San Jose, California. This means the Arizona facility will be its second manufacturing site in the US. The company did not say what incentives it may have received regarding the plant.  

The TSMC statement follows a board meeting in Taiwan on 12 May, the Wall Street Journal reported, with sources saying both the State and Commerce Departments are involved in the plans. The chip plant investment could also help TSMC in lobbying efforts to get the Trump administration to drop its plans to require an export license for many chips shipped to China’s Huawei, produced by US-designed chip-making tools. The proposed new rule would give the Commerce Department the ability to block the sale of semiconductors manufactured by TSMC for Huawei. TSMC has been arguing that the rule, which national security officials say is essential, would significantly reduce its revenue and make it harder financially for it to build a manufacturing facility in the US.