TSMC is planning to build a US$12 billion chip plant in Arizona, a potential realignment of global trade designed to allay US concerns over supply chain security.
Taiwan’s largest company confirmed on Friday it is locating its next major fabrication facility in the US state, a victory for a Trump administration that has pushed for more hi-tech manufacturing to return to the US.
TSMC had negotiated a deal with the administration to manufacture semiconductors in the US to create jobs and produce sensitive components domestically for national security reasons, according to people familiar with the situation.
TSMC – the largest and most advanced maker of chips for other companies – had weighed everything from cost considerations to its global supply chain ahead of the decision.
Its factories, which are primarily located in Taiwan, produce important components designed by Apple and most of the largest semiconductor companies, including Qualcomm, Nvidia, Advanced Micro Devices and China’s Huawei Technologies.