TSMC to Invest $100 Billion in U.S. Chip Manufacturing, Expanding Arizona Operations

Taiwan Semiconductor Manufacturing Company (TSM, Financials) is committing $100 cardinal to grow its spot manufacturing operations successful the United States, bringing its full U.S. concern to $165 billion.

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With continuous changes successful the planetary proviso chain, the concern intends to physique 5 much semiconductor manufacturing plants successful Arizona, hence enhancing section accumulation capability.

Former U.S. President Donald Trump greeted the revelation arsenic a "tremendous determination by the astir almighty institution successful the world." Drawing connected a caller AI infrastructure inaugural combining Oracle, OpenAI, and SoftBank, helium connected the concern to attempts to found the United States arsenic a person successful artificial intelligence.

The U.S. government's larger thrust to warrant section semiconductor manufacturing corresponds with TSMC's growth. Trump has attacked Taiwan for "stealing" U.S. spot accumulation and pushed for taxes connected semiconductor imports, thereby underlining the company's engagement successful the worldwide proviso chain.

The newest concern made by the chipmaker comes from a erstwhile pledge of $12 cardinal successful 2020 to found a installation successful Arizona, past raised to $65 cardinal for a 3rd factory. To assistance with growth, the U.S. Commerce Department has fixed a $6.6 cardinal subsidy.

Key suppliers of some Nvidia (NVDA, Financials)? and Apple (AAPL, Financials), TSMC is besides precise important successful the artificial quality sector. A Nvidia spokesperson said the steadfast volition "fully utilize TSMC's planetary manufacturing network" to amended proviso concatenation resilience.

With initiatives to little reliance connected overseas proviso chains inactive driving concern successful section production, the enlargement emphasizes the strategical relevance of semiconductor manufacture to the U.S. system and nationalist security.

This nonfiction archetypal appeared connected GuruFocus.