Taiwanese chip manufacturer TSMC plans to produce more chips in the U.S., announcing a $100 billion investment in three new facilities and signals from the government in Taipei that it will support the company’s plans while also striving to preserve domestic production.
In addition to the three already announced factories, TSMC will build three more, said CEO CC Wei.
This would bring the Taiwanese company’s investments on U.S. soil to $165 billion. As early as 2020, TSMC announced the construction of a chip factory in Arizona, and the value of its investments has increased from an initial $12 billion to $65 billion.
It is currently unclear what types of chips the Taiwanese company will produce in the new facilities. In Arizona, they announced the production of the most sophisticated two-nanometer chips starting in 2028.
Taiwanese companies must seek permission from Taipei for investments exceeding $45.5 million and undergo compliance checks with Taiwan’s industrial strategy and national competitiveness. After TSMC requests permission for the new investment, the government will process its application, taking into account both national and investor interests, said presidential office spokesperson Karen Kuo on Tuesday, adding that they intend to provide the necessary support to the company.
– Taipei will guarantee that TSMC is allowed to make additional investments in the U.S., but also that the most advanced manufacturing processes remain in Taiwan – Kuo explained.
According to her, the government will simultaneously propose an initiative to establish a global “democratic supply chain” in the semiconductor sector, in collaboration with the U.S. and other partners.
During Donald Trump’s first presidential term, the U.S. restricted the export of advanced technology to China, focusing measures on the tech giant Huawei. President Joe Biden built on Trump’s policy, urging European partners to follow the U.S. example and also restrict the export of machinery.
Just before the end of his term, Biden further restricted the export of chips for graphics cards used in data centers for testing AI models, stating that he wanted to ensure the U.S. and its allies and partners maintain a leading position in that sector.
– The U.S. is currently leading in the field of AI – both in AI development and in designing chips for AI – and it is crucial that we maintain that position – said then-Secretary of Commerce Gina Raimondo.
The ITI association criticized the cabinet’s “insistence” on announcing regulations in the final days of Biden’s presidency, warning of significant geopolitical and economic implications.
