Taiwan-based semiconductor factory invests $40B in Arizona factory

Taiwan Innotech Expo
This photo shows the icon of TSMC (Taiwan Semiconductor Manufacturing Company) during the Taiwan Innotech Expo at the World Trade Center in Taipei, Taiwan, Friday, Oct. 14, 2022. (AP Photo/Chiang Ying-ying) Chiang Ying-ying/AP

Taiwan-based semiconductor factory invests $40B in Arizona factory

A Taiwanese chipmaking giant is tripling its investment in a semiconductor factory in Arizona, a move showing further interest in helping the United States compete with China in innovation after the passage of legislation supporting domestic chip production.

The Taiwan Semiconductor Manufacturing Company will invest $40 billion into its recently announced Arizona fabrication plant. That is three times as much as what the company had previously intended to invest into the new plant announced in November. The new investments will allow the company to open one additional factory and manufacture more advanced chips by 2026 at the Phoenix-based plant.

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The company will announce plans for a second plant on Tuesday that will handle the more advanced chips during an event installing the first tools for chip fabrication, according to the Financial Times. President Joe Biden will make an appearance at the event alongside tech CEOs, such as Apple CEO Tim Cook.

The future factory is part of an effort by tech manufacturing companies to expand semiconductor manufacturing capabilities after an industry shortage. Intel and Micron launched their own semiconductor factories in 2022 in New York and Ohio with the assistance of state and federal authorities.

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The projects are also being partly supported by the CHIPS Act, a bill that President Joe Biden signed in the summer that provides hundreds of billions of dollars to fund efforts to expand U.S. abilities to make semiconductors.

The U.S. government also intends to limit China’s access to advanced chips in hopes of stopping its development of advanced military weaponry. The Commerce Department implemented export controls in October that restricted the ability of Chinese tech companies to receive advanced chips and semiconductors from the U.S.

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