TSMC presses-on with US expansion plan

Taiwan Semiconductor Manufacturing Company’s (TSMC) board approved the creation of a US subsidiary with $3.5 billion in capital, as the company continues its push to increase its presence in the country.

The subsidiary, which will be wholly owned by TSMC, will be set-up in Arizona – a state where the company plans to begin the build of a $12 billion semiconductor factory next year.

Aside from its forthcoming industrial plant, it has production facilities in Washington and design centres in Texas and California.

Its Arizona plant was announced in May [1] at a time when US authorities were pushing for more domestic manufacturing of chips [2] to reduce reliance on local companies sourcing electronics components from China. TSMC plans to begin production from the factory in 2024.

On announcing the new industrial facility, the company noted: “This project is of critical, strategic importance to a vibrant and competitive US semiconductor ecosystem that enables leading US companies to fabricate their cutting-edge semiconductor products within the United States.”

The chip giant serves a diverse customer-base including Apple and Qualcomm, and was previously a Huawei supplier, though it is unclear if the company [3] will be able to serve the vendor moving forward due to US restrictions.

[1] https://www.mobileworldlive.com/featured-content/top-three/tsmc-plans-12b-us-chip-factory
[2] https://www.mobileworldlive.com/featured-content/top-three/us-tipped-to-push-for-domestic-chips
[3] https://www.mobileworldlive.com/featured-content/top-three/tsmc-prepares-for-block-on-huawei-sales

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