TSMC is planning to triple its investment in Arizona in order to work more closely with the United States in the semiconductor industry and further outrun competitors such as Samsung Electronics.

At present, TSMC is building 5-nm foundry facilities in Phoenix, Arizona at an investment of US$12 billion and the facilities are scheduled to be completed in 2024. According to local news outlets, the investment amount is likely to be increased to US$35 billion and the mega site is likely to include six semiconductor manufacturing plants in total. The state government will guarantee water supply to the facilities and provide a subsidy of US$205 million. TSMC’s chip production in Taiwan is currently hampered by a severe drought.

The Taiwanese company’s investment in the United States is likely to increase even more down the road. U.S. President Joe Biden is seeking a budget of US$37 billion for the CHIPS for America Act, which is to provide incentives for semiconductor R&D and production in the United States.

The U.S. president recently ordered semiconductor supply network inspection and more and more U.S. state governments are likely to try for such facilities. The president signed an executive order on Feb. 24 so that the inspection is carried out for 100 days in the electric vehicle battery, rare-earth element and medical supplies industries as well as semiconductor.