Taiwan's TSMC, a leading semiconductor company, said it would invest more than $12 billion in new facilities in Arizona. The company noted that the global supply chain for computer chips continues to be a concern.
This investment is regarded as one of the biggest foreign direct investments in the history of the US. One of the facilities will be used to produce N4 processors, while another will be used to produce 3-nanometer technology.
According to Mark Liu, the chairman of TSMC, the company's new facilities in Arizona would be able to produce the most advanced process technology in the country. They would also enable the development of next-generation low-power and high-performance computing products. Liu thanked the company's partners in the US for their continuous support.
The company's new facilities in Arizona would employ about 10,000 individuals and produce over 600,000 wafers per year. This project is expected to contribute more than $40 billion annually to the company's end-product value.
Two years ago, various manufacturing regions in Asia imposed harsh lockdown measures, which severely disrupted the global supply chain for computer chips. In response to the situation, President Joe Biden signed a bill earlier this year that provides incentives for the production of semiconductors. The bill also provides a tax credit of 25% for computer chip manufacturing.
According to Brian Deese, the director of the National Economic Council, the bill's incentives will help increase the number of workers in major factories and provide more opportunities for contractors and suppliers. He also noted that it would benefit communities that have been left behind during the economic cycle.
After the passage of the legislation, several major companies announced their plans to establish new facilities in the US. One of these is Intel, which is expected to spend more than $40 billion on a new memory chip project.
However, in the summer, several companies, including TSMC, warned that they might scale back their plans to establish new facilities in the US due to the lack of approval of the incentives.
According to a study conducted by the Brookings Institution, China, Japan, and South Korea maintain a combined manufacturing capacity of over 80% of the global semiconductor industry. Taiwanese companies such as TSMC are able to produce over 90% of the world's cutting-edge devices that are used in computers and cell phones.
Due to China's aggressive actions in Taiwan, the company has attracted the attention of Western governments. During a recent meeting of the Chinese Communist Party's legislative officials, President Xi Jinping discussed his country's geopolitical goals. These include the possible invasion of Taiwan and the defeat of democracy in Hong Kong.
The preceding is a summary of an article that originally appeared on Daily Wire.
