WSJ "Taiwan's TSMC to Build Semiconductor Factory in the U.S.... Production Possible in 2023"
[Asia Economy Beijing=Special Correspondent Park Sun-mi] As the U.S. government is promoting semiconductor self-sufficiency, Taiwanese semiconductor company TSMC is reportedly set to announce its plan to build a factory in Arizona soon.
On the 14th (local time), the Wall Street Journal (WSJ), citing sources, reported that Taiwan's TSMC is expected to announce its plan to build an advanced semiconductor factory in Arizona as early as the 15th. The plan for the Arizona factory was already decided at a board meeting held earlier this month, and only the announcement remains.
Sources revealed that the construction of TSMC's new factory involves U.S. government departments including the State Department and the Department of Commerce, and semiconductor production at the new factory could begin as early as the end of 2023. Additionally, the products manufactured at the new factory will be chips with 5-nanometer (1 nanometer = one billionth of a meter) transistors, which TSMC started producing at its Taiwan factory a few months ago.
TSMC is a semiconductor foundry company that manufactures chips on order from numerous U.S. companies such as Apple, Qualcomm, and Nvidia. TSMC holds more than half of the global foundry market share.
TSMC's construction of a U.S. factory aligns with the U.S. strategy to promote semiconductor self-sufficiency and reduce dependence on Asian semiconductor suppliers from Korea, Taiwan, China, and other regions. The U.S. has recently been concerned that the global spread of the novel coronavirus (COVID-19) could disrupt the supply chain of semiconductors, which are key components in advanced industries.
WSJ reported that at least $10 billion is expected to be invested in TSMC's Arizona factory construction, but it is not yet confirmed how much budget has been specifically allocated or whether the U.S. government will provide subsidies for the factory construction.
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TSMC's U.S. factory construction is also expected to serve as a favorable "card" for the Donald Trump administration ahead of the presidential election. Generally, large-scale semiconductor factories bring employment effects involving thousands of jobs.
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