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TSMC's Strategic Expansion in the US

Apr, 07, 2024 Hi-network.com

TSMC, the world's leading semiconductor foundry, has secured a$6.6 billion subsidy from the US government under the CHIPS Act to support the construction of advanced semiconductor manufacturing facilities in Phoenix, Arizona This fabrication plant aims to commence the production of the world's most advanced 2-nanometer semiconductors by the end of the decade. This initiative follows TSMC's establishment of its first Phoenix plant, which broke ground in 2021 and is expected for production in 2024, and a second facility to open by 2026, focusing on advanced 3-nanometer chip technology.

The Arizona project, with a total investment of$65 billion, is anticipated to generate thousands of high-tech and construction jobs, significantly contributing to the US's economic and strategic objectives under the Biden administration.

This agreement is part of a broader strategic partnership aimed at strengthening advanced semiconductor manufacturing in the US while limiting China's development in the field. The ripple effects of TSMC's expansion are expected to catalyze a major shift in the semiconductor supply chain, with leading tech giants like Advanced Micro Devices, Apple, and NVIDIA  anticipated to transition their semiconductor sourcing to the US. 

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