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TSMC invested 12 bn in USA.

 

Taiwan Semiconductor Manufacturing Company will more than triple its investment in the US state of Arizona to $40bn, as geopolitical tensions put pressure on the world’s largest contract chipmaker to step up diversification of its production facilities.

TSMC had invested $12bn constructing a fabrication plant, or «fab», in Arizona. But at an event yesterday marking the installation of the first tools at the Phoenix plant, the Taiwanese company was set to announce a second fab manufacturing more advanced chips from 2026, according to White House officials and people close to TSMC.
But industry experts said the larger TSMC presence would still be unable to accommodate cutting-edge products, such as new iPhone models, when the fabs finally open.
They added that the investments might provide only minimal supply chain security, giving a stark reminder of the immense risks incurred if China attacked Taiwan — where TSMC is based and has the bulk of its operations.
Biden’s Chips and Science Act was passed in the summer, providing $52bn in subsidies for chipmakers based in the US and countering China’s huge investment in its own chip sector.
«What you’re seeing is now a dedicated industrial strategy laying the foundation to crowd in private investment . . . at historic scale,» he added.
But Patrick Chen, head of research at CLSA in Taiwan, said: «If they fully ramp Arizona, the proportion of US-made chips they could provide to customers would be maybe 15 per cent of the total».
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Comments

  1. Dan7 December 2022 at 16:01

    Agreed. This is just 20% of what they should be doing so they need to do 4 or 5 times more so we aren't relying on China for chips. If or when China attacks Taiwan we will all feel the burn from a major lack of chips

    ReplyDelete
  2. Alberto7 December 2022 at 22:34

    I wish neither the US or Europe would be so reliant on Taiwan for this. Or at least have other options besides Taiwan and China. It’s always better to have options in case something happens.

    ReplyDelete

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