A Taiwanese chipmaking giant intends to invest billions into adding to its semiconductor factory in Arizona, a move expected to improve the United States’s ability to compete with China in innovation and one that follows the passage of major legislation subsidizing domestic chip production.
The Taiwan Semiconductor Manufacturing Company, or TSMC, is preparing to expand its efforts in the coming months to provide chip manufacturing facilities in the U.S., according to the Wall Street Journal. The factory will be built alongside a chipmaking facility that the company agreed to build in 2020. While the company has not announced how much it is investing in the new factory, it is expected to cost $12 billion, like its sister factory.
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A spokesperson confirmed that the company is building a second facility near its first Arizona factory site. The company said that it is considering using it to build more advanced semiconductor technology but has not yet finalized its commitment to doing so.
The future factory is part of a more considerable effort by tech companies to expand semiconductor manufacturing capabilities after an industry shortage. Intel and Micron launched their own semiconductor factories in 2022 in New York and Ohio with the assistance of state and federal authorities.
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The projects are also incentivized by the CHIPS Act, a bill that President Joe Biden passed in the summer that provided hundreds of billions of dollars to fund efforts to expand U.S. abilities to make semiconductors.
The U.S. government also intends to limit China’s access to advanced chips in hopes of stopping its development of advanced military weaponry. The Commerce Department implemented export controls in October that restricted the ability of Chinese tech companies to receive advanced chips and semiconductors from the U.S.
