The Taiwanese semiconductor giant will build its third facility in Arizona as part of a $65 billion investment in the United States.
The United States has promised Taiwanese semiconductor giant TSMC up to $6.6 billion to expand production at a facility it is building in Arizona.
U.S. officials said the funding announced Monday will help TSMC build a third semiconductor factory in Arizona, in addition to two facilities already planned.
TSMC's total investment in the United States will increase to $65 billion under the agreement, U.S. officials said.
The agreement is the latest effort by President Joe Biden's administration to encourage domestic production of advanced chips that support cutting-edge industries such as artificial intelligence.
The funding is related to the CHIPS and Science Act, which Biden signed into law in 2022 and aims to revitalize the U.S. semiconductor industry by providing large subsidies to attract private investment. It is said that
The United States relies heavily on Asian companies to supply high-end chips, raising concerns about disruption in the event of a geopolitical crisis in the region, such as China's invasion of autonomous Taiwan. There is.
Biden said the investment would put the United States on track to produce 20% of the world's most advanced semiconductors by 2030.
“Semiconductors (chips smaller than the tip of a finger) power everything from smartphones to cars to satellites and weapons systems. The United States invented these chips, but over time, production capacity has gone from nearly 40% of global capacity to just over 10%, leaving not a single cutting-edge chip in production and exposing us to significant economic and national security vulnerabilities.” Biden said in a statement. Announced by the White House.
“I was determined to turn this situation around. Thanks to CHIPS and the Science Act, which are key parts of my U.S. investment plan, semiconductor manufacturing and jobs are recovering.”
TSMC, which produces nearly all of the world's most advanced microchips, has sought to diversify its chip production away from Taiwan under pressure from customers and the government concerned about the island's security.
The company began construction on its first factory in Phoenix in 2021 and began construction on its second facility last year.
In addition to the United States, the company plans to produce chips in Japan and Germany.
The Biden administration will next week provide South Korea's Samsung with more than $6 billion in funding to expand chip production in Texas, Reuters reported on Monday, citing two people familiar with the matter. He plans to make an announcement.