TSMC Makes $40 Billion Investment In Giant US Plants

Known for making iPhone chips, TSMC has decided to invest billions of US dollars in a giant plant project in Arizona, USA. The company has the privilege of being the largest maker of microchips in the world. It has several renowned companies, including Apple, as its clients.  

 According to the computer chip monster, the firm intends to invest $40 billion in Arizona plants. Joe Bidden, the President and boss of the Taiwan-based firm, who announced the latest investment, has opened a new factory in the US state of Arizona. Bidden plans to bring all vital components into onshore production for almost everything, be it phones or military jets. 

The significant investment by TSMC in Arizona Plants is in the headlines these days as it is one of the most momentum investments in the USA by foreign companies. The company will spend more than double its previous foreign investments, which is the largest ever investment TSMC has made in a foreign country.  

The chairman of TSMC, Mark Liu, assumes the firm will produce two plants of semiconductor fabrication. It expects the first semiconductor fabrication plants will be available online in two years. Semiconductors work as the brains of electronics, including car components, Artificial Intelligence, and smartphones. 

In Arizona plants, TSMC will make 3nm and 4mn chips for iPhone processors. The Taiwan-based firm is considering the investment in Arizona a boost for the recent supply chain disruption, which is the primary cause of chip shortage and increasing tensions between the world’s two superpowers, China and the USA.  

President Donald Trump’s visit to the office of TSMC in 2020 supposedly led the firm to invest in a plant in the USA. The company confirms the original deal for the growth of Bidden administration by announcing the size of the latest foreign investment.    

Joe Bidden expressed his views during his speech in Phoenix on December 6, 2022. He said the company produces only 10 % of the chips in the world, though it leads the world in the areas of researching and designing new chip technologies.  

According to Bidden, the US was making more than 30 per cent of the computer chips in the world unless other countries got such jobs. The United States can better lead the global economy than any other country in the future if TSMC keeps its focus, he added. 

TSMC welcomed many technology companies like Nvidia that rely on its production in the opening ceremony of the Arizona plant. Apple, the tech giant, also found the event a significant moment. Tim Cook, the Chief Executive of the iPhone maker, said TSMC’s intention to form fresh and deeper roots in the US led the company to look forward to working together in the years ahead.  

TSMC’s largest foreign investment can be a game changer in the tech industry. Dan Ives, a Wedbush analyst, said TSMS has taken a significant step by investing in US chips for decades to come. The monumental move can begin the legitimate battle between China and United States on chip production.