Taiwan’s TSMC to build Arizona chip plant
Taiwan Semiconductor Manufacturing Co, Largest Chip Manufacturer, Announces Plans to Build $ 12 Billion Plant in Arizona.
Donald Trump has long promised to get rid of dependence on foreign semiconductor manufacturers, and the current economic downturn caused by the coronavirus is smoothly leading the government to implement this plan.
U.S. Secretary of Commerce Wilbur Ross described the deal with TSMC as further evidence that Trump’s political agenda is helping to revive American production.
TSMC is a major supplier to US tech giants such as Apple Inc and Qualcomm Inc, as well as Chinese companies, including Washington’s blacklisted Huawei Technologies..
«This project is of critical strategic importance to the dynamic and competitive US semiconductor ecosystem that enables leading US companies to manufacture their cutting edge technology products in the US», – declares TSMC.
While the plan is huge in terms of foreign investment in the US, it is small by TSMC standards.. TSMC’s capex plan for 2020 is $ 15-16 billion.
Taiwanese manufacturer says plant is planned for nine years.
«The budget assumes that in the end the scale of the project will not be very large. The contribution to the total revenue from the plant will be approximately 3-4%», – analysts say.
A spokesman for the US Department of Commerce said TSMC’s decision to locate a plant in Arizona could push the country’s leadership to implement a bill that severely restricts sales of TSMC Huawei chips..
Credit Suisse analysts said the proposed restrictions could jeopardize 14% of Huawei’s TSMC sales, exacerbate tensions between the US and China, and delay the rollout of the next-generation 5G mobile network.
Shares of TSMC, the largest global semiconductor company with a market capitalization of about $ 255 billion, up 1.7% at the end of last week.
It is known that the plant in the USA will produce the most advanced nano-chips that can be used in high-tech defense and communications devices..
The company’s products are used in the assembly of the iPhone and Apple is working closely with TSMC, intending to be the first to take advantage of the new technological achievements of the Taiwanese..
US Secretary of State Mike Pompeo said chips from TSMC’s new plant will be used everywhere from artificial intelligence and 5G base stations to F-35 fighters.
Semiconductors play a key role in both consumer electronics and defense technology. The vast majority of the most advanced chips are manufactured in Asia, causing concern among US officials as strategic rivalry with China deepens due to global pandemic.