The world’s biggest chipmaker, Taiwan Semiconductor Manufacturing Co, has agreed to make its most advanced products in Arizona from 2028, in a boost to White House efforts to bring semiconductor production on to home soil. TSMC will make the latest cutting-edge 2-nanometre chips in a fabrication plant, or fab, it is building in Phoenix, Arizona, marking an upgrade from its previous plans. That facility will be the company’s second in the US. The first, which is also in Arizona and was announced in 2020 under the Trump administration, will begin production next year. TSMC also said on Monday that it will increase its total investment in the US from $40bn to $65bn to build a third fab, with 2nm or even more advanced technology, which will be operational by 2030. The Taiwanese company and the US commerce department said on Monday that Washington would provide it with support worth $6.6bn in grants and up to $5bn in loans. The subsidies fall under the Chips Act, which was passed in 2022 to boost US chipmaking. Last month, the Biden administration unveiled a deal for $8.5bn in grants and up to $11bn in loans for Silicon Valley’s Intel, which has pledged $100bn in new investment. TSMC’s commitment helps the White House move towards its goal of bringing 20 per cent of the world’s advanced semiconductor manufacturing onshore by 2030. Growing fears of a Chinese invasion of Taiwan, where 90 per cent of cutting-edge chips are currently made, have prompted the US to step up efforts to boost its domestic semiconductor production. “TSMC is expanding its manufacturing capabilities in Arizona such that for the first time ever we will be making, at scale, the most advanced semiconductor chips on the planet here in the United States of America,” said US commerce secretary Gina Raimondo. “[We are] massively strengthening our national security position.” “Our US operations allow us to better support our US customers, which include several of the world’s leading technology companies,” said Mark Liu, chair of the leading contract chipmaker.
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