Taiwan Semiconductor Manufacturing Co. (TSM) plans to build a second microchip plant in Arizona and raise its investment in America to $40 billion U.S. from $12 billion U.S. previously.
The company, which is headquartered in Taiwan, also plans to make more technically advanced chips within the U.S. than it originally proposed.
The $40 billion U.S. investment by Taiwan Semiconductor is one of the largest foreign investments in American history, and the largest ever in the state of Arizona.
Semiconductor chips are used today in everything from computers and smartphones to cars and microwave ovens. There is growing concern in the U.S. that the country has become too reliant on Chinese chip manufacturers, and there is a move to revive the domestic semiconductor industry.
U.S. President Joe Biden signed the “CHIPS and Science Act” into law this past August, which includes $52.7 billion U.S. in loans, grants, and other incentives to attract investment in U.S. semiconductor manufacturing.
Once the two Taiwan Semiconductor plants open in Arizona, they will produce enough chips to meet America’s annual demand, about 600,000 wafers per year.
The first plant in Phoenix, Arizona is expected to begin producing chips by 2024. The second plant is scheduled to open in 2026.
Taiwan Semiconductor’s stock is down 37% this year and trading at $81.62 U.S. per share.
