TSMC, the world's largest contract chipmaker, has announced an additional $100 billion investment to build advanced chip factories in the United States. News of the project sent the company's shares up 2.25% this morning (March 4).
TSMC CEO CC Wei met with US President Donald Trump yesterday (March 3) to announce that the Taiwanese semiconductor company will invest an additional $100 billion in the United States.
TSMC invests an additional $100 billion in a semiconductor factory in the US.
Taiwan Semiconductor Manufacturing Co. has decided to invest more money to build more advanced chip factories in the United States in the coming years, a person familiar with the matter said. The $100 billion investment is in addition to TSMC’s previous major investment in the United States.
In April 2024, TSMC agreed to expand its planned investment in the United States by $25 billion to $65 billion and will build a third factory in Arizona by 2030.
The US Commerce Department under then-President Joe Biden finalized a $6.6 billion government grant in November 2024 for TSMC’s US semiconductor foundry in Phoenix, Arizona. In a statement, TSMC expressed its “desire to discuss our shared vision for innovation and growth in the semiconductor industry and explore ways to strengthen the technology sector with our customers.”
Biden signed the CHIPS and Science Act of 2022, which provides $52.7 billion in subsidies for U.S. semiconductor manufacturing and research to boost domestic production and make the U.S. less dependent on semiconductors made in Asia. Under Biden, the U.S. Commerce Department has convinced all five leading semiconductor companies to locate factories in the United States as part of a program to address national security risks from imported chips.
Mr Trump's Commerce Secretary Howard Lutnick told lawmakers last month that the program was a "great initial payment" to rebuild the industry but declined to commit to grants already approved by the department, saying he wanted to "read them, analyse them and understand them".
A TSMC spokesperson said last month the company received $1.5 billion under the CHIPS Act before the new administration took office under key terms of the deal.
Last year, TSMC agreed to manufacture the world's most advanced 2-nanometer technology at a second plant in Arizona, which is expected to begin production in 2028. TSMC also agreed to use its most advanced chip manufacturing technology, called "A16," in Arizona. TSMC's financing includes a low-cost government loan of up to $5 billion. TSMC shares rose 2.25% today after media reports of plans to invest another $100 billion to build chip factories in the United States.
Building a factory in the US will help TSMC meet this demand more efficiently in the face of the rapid development of the technology industry, the increasing demand for semiconductor chips. This will also help the company overcome the global supply chain crisis caused by the Covid-19 pandemic and geopolitical instability.
In addition, manufacturing chips in the US helps TSMC reduce the risk of having to rely too heavily on one region (such as Asia) and creates opportunities for this business to cooperate more closely with large technology companies such as Apple, Nvidia and AMD, TSMC's main customers.
Source: https://www.baogiaothong.vn/tsmc-dau-tu-bo-sung-100-ty-usd-xay-dung-nha-may-san-xuat-chip-tai-my-192250304005230222.htm
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