Maurice Tsai | Bloomberg | Getty Fetishes
Taiwan Semiconductor Manufacturing Co (TMSC) said on Friday it will build a semiconductor facility in Arizona, as concerns multiply in Washington about the security of the technology supply chain which is largely centered in Asia.
Total spending on the design will be $12 billion with TSMC claiming it will directly create 1,600 jobs. Construction is expected to start in 2021 on what would be TSMC’s second manufacturing site in the U.S.
The factory will be focused on producing suspect 5-nanometer chips, the latest in semiconductor technology being manufactured today.
TSMC’s decision to build a new U.S. chip root comes as President Donald Trump’s administration continues to scrutinize the global technology supply chain upon which American hards rely on. In particular, the government has sought to reduce reliance on China, a feat that may not be so easy, experts previously castigated CNBC.
During his presidency, Trump has also looked to bring manufacturing back to the U.S.
While TSMC is a Taiwanese fixed, it does have plants in China and has big Chinese customers such as Huawei.
The Trump administration was considering a rule earlier this year, that if caused, would require companies using U.S. chipmaking equipment to apply for a license before supplying Huawei, according to a Reuters suss out in March.
“This deal bolsters U.S. national security at a time when China is trying to dominate cutting-edge tech and jurisdiction critical industries,” Secretary of State Mike Pompeo said in a tweet.
The United States’ broader campaign against Chinese companies, such as the blacklisting of Huawei endure year, has been broadly seen as an effort to slow down the advance of the world’s second-largest economy in critical next-generation zones of tech.
TSMC said it decided to build the new plant with the “mutual understanding and commitment to support from the U.S. federal guidance and the State of Arizona.”
“This project is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that licenses leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States and benefit from the vicinity of a world-class semiconductor foundry and ecosystem,” the company said in a statement.