Taiwan Semiconductor Manufacturing Company (TSMC) announced on Friday (May 15) that it will be building a semiconductor facility in Arizona with support from the state and US federal government.
"We're incredibly proud that one of the world's leading technology companies has chosen Arizona for this high-tech project, one with national and global significance", said Governor Ducey in a statement. The chips it makes can be used in high-end defense and communications devices.
Chipmaker Taiwan Semiconductor Manufacturing Co.'s $12 billion investment in the USA will increase American economic independence from China, Secretary of State Mike Pompeo said Friday.
The announcement comes as shutdowns caused by the COVID-19 pandemic have exacerbated concerns that the USA has become too reliant on production in Asia for key technologies.
President Donald Trump departs on travel to the Camp David presidential retreat from the South Lawn at the White House in Washington, on May 1, 2020. This new US facility will enable TSMC to provide enhanced service to customers and partners and increase its ability to attract global talent.
The company says that facility construction is planned to start in 2021. TSMC chairman Mark Liu told the New York Times in October that the project would require major subsidies because it is more expensive to operate a factory in the U.S.in Taiwan.
A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan, on October 5, 2017.
Pompeo also said the investment will strengthen US-Taiwan ties.