TSMC to ramp up semiconductor production in the U.S. – Announces Additional $100 Billion Investment!
TSMC, the world’s largest contract semiconductor manufacturing company, announced that it will invest an additional $ 100 billion (about 15 trillion yen) to strengthen semiconductor production in the United States.
🟦TSMC invests an additional 0 billion in the United States! 3Establishment of new semiconductor factories
TSMC has been building an advanced semiconductor factory in Arizona, USA, and has invested a total of $ 65 billion. However, this additional investment will expand the total investment in the U.S. to $165 billion. The plan includes the construction of three new semiconductor fabs, two advanced packaging facilities, and a research and development (R&D) site.
As a result, TSMC will strengthen advanced semiconductor production for AI and next-generation technologies, especially supporting US technology companies such as NVIDIA, Apple, and AMD. In addition, the investment will also be the largest single foreign direct investment in U.S. history, with more than 40,000 jobs expected to be created over the next four years.
🟦 Why TSMC decided to invest so much in the U.S.
TSMC’s decision is based on the US government’s semiconductor policy and geopolitical factors.
1. U.S. Government Support and Economic Security
The Biden administration has been promoting semiconductor production in the U.S. based on the CHIPS Act. TSMC is also expected to receive a $6.6 billion subsidy, which will benefit from boosting production in the United States. In addition, former President Trump said that “Taiwan has a monopoly on the semiconductor market” and emphasized the importance of production in the United States.
2. Growing demand for AI and next-generation technologies
The demand for semiconductors for AI is skyrocketing, especially for chips for data centers. TSMC is responsible for contract manufacturing from customers such as NVIDIA and Apple, and is working to stabilize the semiconductor supply chain by expanding supply in the United States.
3. Diversification of geopolitical risks
Taiwan is the center of the world’s semiconductor production, but amid the US-China confrontation and rising tensions in the Taiwan Strait, TSMC is trying to diversify risks and increase customer peace of mind by increasing production bases in the United States.
🟦 Summary
TSMC will invest an additional $100 billion to expand semiconductor production in the U.S. and build new factories and R&D facilities around Arizona. This move is due to factors such as the support of the U.S. government, the expansion of the AI market, and the diversification of geopolitical risks, which is expected to have a significant impact on the semiconductor industry in the future.
I feel that TSMC’s investment expansion will not only strengthen the supply of semiconductors in the United States, but also further accelerate the global technology competition.
