TSMC to build a chip building plant in the US with Government backing

The Taiwan Semiconductor Manufacturing Company, TSMC, is reportedly planning to build a multi-billion dollar chip-making plant in the US, a move which hopes to lower the US’ reliance on Asia for semiconductor manufacturing. 

Currently, the chipmaker is said to be negotiating a deal with the US government, which will likely see a new production facility be created in the US state of Arizona. This deal will see the US government support TSMC, though at this time it is unknown what form this support will take. The move will allow US manufacturers to produce sensitive equipment on US soil, a substantial positive for the US government when it comes to national security.  

TSMC currently produces chips for several US manufacturers, including Nvidia, Apple, AMD, and Qualcomm. As it stands, TSMC plays a critical role in the creation of most high-end electronics, be it smartphones, games consoles, computers or national infrastructure. Bringing a TSMC fab to the US will also bring high-skilled workers to Arizona, a move which will undoubtedly be positive for the local economy. 

Regardless, cutting-edge fabs are expensive to build and take years to enter operation, which means that the US will need to give TSMC some substantial incentives to make building in the US worth their while. Expect big tax breaks, a direct financial investment, and other big incentives to bring TSMC to US soil.  

In the US, both Intel and GlobalFoundries are big players in the world of silicon fabrication. That said, neither company is well-suited for manufacturing high-end silicon for 3rd party US companies. Intel’s manufacturing is dedicated almost exclusively to its own product lines while GlobalFoundries has dropped out of leading-edge foundry market, ironically due to a lack of investment for its planned 7nm lithography node.   

An official announcement of the US’ deal with TSMC is expected to be made in the coming days.