Taiwan Semiconductor Manufacturing Company is increasing its investment in the United States, announcing on Tuesday that it is building a second semiconductor factory in Arizona and increasing its investment there from $12 billion to $40 billion. The move marks one of the “largest foreign direct investments in U.S. history,” according to the company.
TSMC The plans come as tensions between Washington and Beijing rise over chips, with President Joe Biden imposing a set of controls on the sale of advanced chips and chipmaking equipment to Chinese companies.
Biden visited the manufacturer’s site in Phoenix and spoke about bringing jobs and investment to the state. Other lawmakers and business leaders also attended the event, including Apple CEO Tim Cook.
“As many of you know, we work with TSMC to make the chips that help power our products around the world, and we look forward to expanding that work in the years to come as TSMC forms new roots. deepest in America,” Cook said at the event, adding that with the opening of the new facility, Apple’s own silicon chips “can be proudly stamped ‘Made in America’.”
TSMC previously announced it was building a $12 billion factory in Arizona that will eventually manufacture 3-nanometer chips, TSMC’s most advanced technology. Between the two plants, thousands of “high-paying, high-tech jobs” will be added to the state and 600,000 wafers per year will be produced, the company said.
Chips are an indispensable part of everything from smartphones to washing machines, but are also difficult to manufacture due to the high cost of development and the level of knowledge required, which means that much of the production is concentrated between a handful of suppliers.
White House touts new investments as direct result of Biden’s economic plan, including $200 billion CHIPS and Science Act. Biden has visited communities where companies like TSMC and Intel have announced new investments since the law was passed this summer.
“That means more workers in these big factories, but it also means more opportunities for suppliers and contractors, well-paying construction jobs, opportunities for small and medium-sized manufacturers and suppliers,” said the director of the National Economic Council Brian Deese to reporters on a call Monday. . “This means economic opportunity for communities that have often been left behind in economic cycles, including traditional energy communities that have powered our nation for generations and tribal nations.”
The global chip shortage first appeared at the start of the pandemic, that has disrupted supply chains and changed consumer buying habits. Automakers cut chip orders while tech companies, whose products have been boosted by the lockdown, bought as many as they could.
The facility Biden will visit in Phoenix on Tuesday is expected to begin producing chips in 2024. The new facility is expected to begin production in 2026.
– CNN’s Nikki Carvajal, Wayne Chang and Diksha Madhok contributed to this report.