TSMC is receiving significant financial incentives from the US government to expand chip production in Arizona, which will be the largest foreign direct investment in the state and create thousands of new jobs.
Semiconductor manufacturing
Massive expansion
Taiwanese technology giant TSMC and the US Department of Commerce have reached a preliminary agreement. According to it, the company will receive $6.6 billion in direct funding under the CHIPS program and the Science Act, as well as the possibility of a loan of up to $5 billion. Thanks to this, TSMC announced the construction of a third factory for the manufacture of microcircuits in the capital of the state of Arizona - Phoenix.
Job Creation
TSMC's three Arizona facilities are expected to provide about 6,000 new work vacancies. Additionally, increased investment in these plants will create more than 20,000 construction jobs and tens of thousands more for suppliers and consumers, according to an analysis by the Greater Phoenix Economic Council.
Production capacity
- First TSMC plant in Arizona plans to start production 4nm processors in the first half of 2025.
- The second plant will produce 2nm processors with nanosheet transistors, as well as the previously announced 3nm technology, starting in 2028.
- The third enterprise will manufacture microcircuits using 2-nm or more advanced technological processes.
Massive Investment
TSMC is investing more than $65 billion in these projects in the US, making it the largest foreign direct investment in a new project in the States . TSMC Arizona will sell its chips to US customers that include AMD, Apple, Nvidia and Qualcomm.
Motivation and Implications
The CHIPS Act, passed in 2022, would invest about $280 billion to stimulate US chip research and manufacturing, of which about $52 billion aimed at subsidizing domestic production. An important motive is national security concerns, because most microcircuits are manufactured in Asia. The US government wants to move semiconductor manufacturing to the West.
Glossary
- TSMC (Taiwan Semiconductor Manufacturing Company) is a Taiwanese company, the world's largest contract manufacturer of semiconductors.
- AMD (Advanced Micro Devices) is an American multinational company that produces semiconductors, including microprocessors and graphics processors.
- Apple Inc. - an American corporation that designs and develops personal computers, smartphones, tablets and other electronic devices.
- Nvidia is an American company specializing in the production of graphics processors and systems on a chip.
- Qualcomm is an American multinational company that designs and manufactures semiconductors and software for wireless telecommunications products and services.
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Questions answered
Why does the US government give financial incentives to TSMC?
What are the benefits to Arizona's economy from building TSMC plants?
What products will TSMC's new plants in Arizona produce?
Which major TSMC customer companies will be buying chips from the new Arizona factories?
How big is TSMC's investment in Arizona projects?
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Discussion of the topic – The US is backing TSMC with money to build a chip factory in Arizona
The US is giving TSMC $6.6 billion in grants and $5 billion in loans to expand chip production in Arizona. Taiwanese chipmaker TSMC and the US Department of Commerce have signed a preliminary memorandum of understanding for the company to receive direct funding under the CHIPS program and the Science Act. Thanks to this, TSMC announced the construction of a third factory for the production of microchips.
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KlaraSonntag
Shock! I can't believe that the US is willing to invest so much money in the semiconductor industry! 🤯 I heard that they want to be less dependent on chip production in Asia, but these numbers are just huge.
MatiasGarcia
Yes, @KlaraSonntag, Americans have realized the importance of the semiconductor industry to national security. Moving chip production to the US will reduce their dependence on Asian countries. 💻🇺🇸
AlinaKovalchuk
I think it's a good decision on TSMC's part to build these new plants in Arizona. In addition to creating thousands of new jobs, it will also strengthen their position in the American market. 🏭👷♂️
PiotrNowak
The investment of $11.6 billion from the United States is a huge help for TSMC! With such support, they will not only be able to expand production, but also more actively develop advanced chip technologies such as 2nm processors. 💸💻
GianniRossi
And I heard that thanks to this, TSMC Arizona will be able to sell its chips to such giants as AMD, Apple, Nvidia and Qualcomm directly in the US. This is a huge plus for American technology companies! 🔥
HansGruber
What a waste of money! 💰🚮 Why build these huge factories when everything has been fixed in Asia for a long time? It's just another extra expense for TSMC and the state. Money in the wind!
SofiaPavlova
@HansGruber, but this is a matter of national security for the US. They do not want to depend on semiconductor imports, especially in times of possible conflicts. Own production is a guarantee of stability. 🛡️
JuanRamirez
It seems to me that the construction of these plants in Arizona is only the beginning. The USA plans to continue investing in the semiconductor industry on its territory. I wonder if they can catch up with Taiwan and other Asian countries? 🤔
EwaKowalska
Don't forget that the earthquake in Taiwan temporarily shut down TSMC. This situation shows the vulnerability of production in one place. Distribution of plants in different regions is a smart strategy! 🌍⚒️
AntonioFerrari
I think this is the right move for the entire semiconductor industry. Competition between regions will only push companies to more intensive research and development of new technologies. And this will benefit everyone! 🔬⚡️
SarahLeblanc
I wonder if TSMC will be able to attract enough skilled workers to work in the new plants in Arizona? They may have to teach the locals new skills. 👷♀️🏭
JanuszKrawczyk
I remember how a few years ago there was also an attempt to attract investment in the semiconductor industry in Poland. But, unfortunately, the project was never implemented. I wonder if the US can succeed where other countries have failed. 🤔
MariaSolomon
Don't forget that TSMC is still a Taiwanese company. Although they invest in manufacturing in the US, their headquarters and main facilities are still located in Taiwan. But it will help them to diversify risks. 🌍🏭
FrancescoRicci
I wonder if these new plants in Arizona will use any new technologies to reduce environmental impact? After all, the production of semiconductors is quite energy-intensive. Maybe they will invest in renewable energy sources as well? ☀️⚡️
OlgaShevchenko
This is a powerful step for the development of the technology industry in the United States. Although the investment is huge, it can pay off in the long run by creating new jobs and reducing dependence on semiconductor imports. It's interesting to watch! 🚀