The world’s largest semiconductor manufacturer and third-largest chip manufacturer, Taiwan Semiconductor Manufacturing Co., or TSMC, has announced plans to build a $12 factory in Arizona.
The move comes after TSMC suffered significant disruptions across its supply chain amid the coronavirus outbreak in China.
TSMC to open Arizona factory
The factory’s construction is slated to commence next year, with TSMC hoping the facility will begin producing 5-nanometer transistors in 2024.
Roughly 1,600 jobs are expected to be created through the factory’s creation, with TSMC expecting to invest $12 billion into the facility between 2021 and 2029.
TSMC currently operates a factory in Washington and design centers in California and Texas.
Trump administration frames factory as security victory
TSMC’s decision to launch the Arizona facility has been welcomed by the Trump administration — described the United State’s reliance on Asian semiconductor and chip manufacturers as a national security risk for several years.
U.S. Secretary of State Mike Pompeo applauded the news, tweeting: “The U.S. welcomes TSMC’s intention to invest $12B in the most advanced 5-nanometer semiconductor fabrication foundry in the world.”
“This deal bolsters U.S. national security at a time when China is trying to dominate cutting-edge tech and control critical industries,” Pompeo added.