Increase the size of the investment from $12 billion to $40 billion
“Annual demand in the United States is expected to be sufficient to supply 600,000 wafers”
TSMC plans to establish a second semiconductor factory in Arizona, USA, and expand the total investment to about 40 billion dollars (about 53 trillion won).
According to CNBC, at the groundbreaking ceremony for TSMC’s first factory in Arizona, scheduled for the 6th (local time), TSMC founder Maurice Changi and US President Biden are expected to jointly announce this.
It is one of the largest foreign investments in US history and the largest investment in Arizona.
Along with this, TSMC also announces plans to produce 4nm chips in the first plant, which is more technologically advanced than the 5nm (nanometer) chips originally proposed, and in the second plant to produce 3nm chips. The first factory will produce semiconductors from 2024, and the second plant aims to start operating in 2026.
When the TSMC plant goes live, it will produce enough semiconductors to supply the US’s annual demand of 600,000 wafers, said Ronnie Chatterjee, acting deputy director for industrial policy who oversees the law.
“This is the foundation of personal electronics and the future of quantum computing and AI,” he said. “When TSMC’s two factories are completed, the demand for semiconductors in the United States will be met, so there is no need to rely on other companies,” he said.
By signing the Chips and Science Act in early August, President Biden allocated billions of dollars to incentivize semiconductor production in the United States. The law also includes $52.7 billion in loans, grants and other incentives, as well as billions of dollars in tax credits to encourage investment in semiconductor manufacturing in the United States.
On this day, the groundbreaking ceremony for the TSMC factory will also be attended by Apple (AAPL) CEO Tim Cook, Micron (MU) CEO Sanjay Merotra, and NVIDIA (NVDA) Jensen Huang.
Guest Correspondent Kim Jung-ah kja@hankyung.com
