Taiwanese chip manufacturer TSMC announced on Tuesday that it would more than triple its planned investment at its new Arizona plant to $40 billion, making it one of the largest foreign investments in American history. Apple CEO Tim Cook and President Joe Biden lauded the project.
The Taiwan Semiconductor Manufacturing Co. will bring the world’s most sophisticated chip production technology to the country by 2026.
TSMC revealed on Tuesday that it will triple its investment in Arizona, where it is constructing a $12 billion semiconductor factory, to $40 billion to construct a second, even more, sophisticated plant.
After supply chain problems shook up the American economy early in Biden’s presidency, he scored a significant triumph with the increased investment.
In a speech given in front of the facility, which was draped with an American flag and a sizable banner saying “A Future Made in America Phoenix, AZ,” Biden said that “American manufacturing is back, folks.”
During the visit to the $12 billion plant, Biden stated that these are the world’s most slashing semiconductor chips which are already built in Phoenix and they would power iPhones and MacBooks. He added that Apple had to purchase aloof the advanced chips from other countries. But now, they are going to start bringing more of their supply chain home. He thinks that it might be a game-changer.
Several CEOs, including Apple’s Tim Cook, Lisa Su from Advanced Micro Devices Inc., Peter Wennik from ASML Holding NV, and Jensen Huang from Nvidia Corp., attended the Phoenix event, which was conducted to commemorate a construction milestone.
TSMC’s Chairman Mark Lui said: “TSMC is committed to building a strong semiconductor manufacturing ecosystem in the United States.”
Major clients have pushed TSMC to produce additional advanced chips in the US. Cook stated during the event that Apple would use Arizona-sourced chips.
Cook said, “the progress we have made with Apple silicon has transformed our devices.” he continued by saying “Now, thanks to the hard work of so many people, these chips can be proudly stamped ‘Made in America.’
Cook said that to produce the chips that power their products around the globe, they collaborate with TSMC. and they expect to expand such endeavors as TSMC establishes new and stronger roots in America in the years ahead.
TSMC added that it intended to construct a facility for the recycling of industrial water. Chip production requires a lot of water, and Arizona, which is primarily a desert state, is experiencing growing water scarcity.
According to a White House official, the new factory will start up by 2026 and will be the first one in the country to produce 3-nanometer chips, the most advanced ones currently on the market. According to the company, TSMC will expand its staff in Arizona from 1,600 to 4,500 as a result of the growth they have been making.
The nanometer size describes the space between transistors on a chip; generally speaking, the fewer there are, the more efficient the device is. Such chips are essential for everything from smartphones and driverless cars to supercomputers and Al technologies because they serve as the brains of electrical gadgets.
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According to TSMC and the White House, Apple and chipmakers AMD and Nvidia will be among the first customers purchasing chips from the Arizona plant.
Advanced chips are primarily produced in Asia by TSMC and Samsung Electronics of South Korea.
By providing incentives for businesses to develop chip capacity on American soil, the US hopes to change this. To support the local semiconductor industry, the government passed the $52.7 billion CHIPS and Science Act package in July.
Along with TSMC’s increased investment plans, Samsung is constructing a $17 billion facility in Texas, while top US chipmaker Intel is investing at least $40 billion in the construction of chip factories in Arizona and Ohio.
Only TSMC, Samsung, and Intel are now producing or attempting to produce semiconductors as advanced as 3-nanometer and the three companies plan to begin producing even more advanced 2-nanometer processors by 2025.
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