Taiwan chip maker plans to $12 billion to build the factory in Arizona

Taiwan Semiconductor Manufacturing provides $12 billion building a chip factory in Arizona, a decision to appease the concerns of the United States national security and move more high-tech manufacturing in America designed to spend. TSMC said Friday that in 2021 will begin the construction of its next major production facility, to be completed by 2024, while investments fell short of his previous spending on cutting-edge factories, it is a change for a company that now semiconductors to put such big names apple and Huawei Technologies primarily from his home base in Taiwan. As the largest and most advanced in the world chip manufacturer for other companies, TSMC playing running on the server on the Internet a vital role in the production of smartphones and laptops. It is situate his decision to invest in the western state after officials warned the White House repeated intrinsically to the threat with a lot of electronics in the world had done outside the United States TSMC, had negotiated the agreement with the management of American jobs to create products and components that are sensitive to national level for national security, according to people close to the situation. The Asian chipmakers of US investment emphasizes the delicate balance that has among its huge list of US customers and China, which sees Taiwan checked independently proposed as part of its territory. to establish Beijing’s ambition, a world-class domestic semiconductor industry, unnerved Washington, which fears technological advantage of the country can be sustained threat. The TSMC executives, the plants in Nanjing and Shanghai, making the chips of 5G networks aircraft by US fighter have to go to work throughout the company stressed neutral. “The measure similar & Technology, TSMC that China must find a balance between the United States and China suggesting” Sanford C. Bernstein & Co. analysts led by Mark Li wrote after the announcement. “Overall, this is probably the minimum price to remain neutral. Beid TSMC needs to keep scale in the United States and China and remain competitive and this is probably to keep a minimal cost of this strategy.” The facility is a Envisioned small step in terms of the global industry. At the end, will churn out 20,000 wafers per month, compared to the hundreds of thousands of people TSMC degree from the underlying primary source. And 5-nanometer process technology agreement to make a current standard, probably a couple of generations old begins with the issue again in a few years. The higher cost of labor in America, are a factor prior to the decision. A real Fab suggestions is expensive to build: the company spent NT $500 billion to build ($17 billion) a foam structure in the southern Taiwan city of Tainan, the new iPhone will deliver this year. It plans another $16 billion in investments in 2020. The Arizona plant is subject to approval by the council that TSMC may hinge on incentives. “There is a cost gap that is acceptable to this hard spot. Of course, we have – we do many things to reduce cost gap,” said TSMC Chairman Mark Liu on a current call Analyst conference. If the federal government provides money to a US facility, it has marked a change in policy and rhetoric of a republican government. Trump White House intervention rarely so direct favoring industrial bearing market dynamics. An effort supported by such a government with Foxconn – Apple’s main iPhone assembly – in Wisconsin, has not yet made as many jobs as expected. However, emerging trends can be one of the reconsideration forces. The US government is already there or billion dollar loan companies to maintain a recession fueled a pandemic in the middle of water. The crisis has also shown how vulnerable are global supply chains to such shocks. The White House may also be motivated by wider political factors. Trump has attacked international trade agreements and tried to restrict the access of semiconductor technology in China, has studied the technological progress of the country included. TSMC said its plant in Arizona 1,600 jobs and lead to a highly skilled workforce in Arizona Trump agreement creates prospects for re-election this year could help. “Building TSMC plan a facility semiconductor $12000000000/2 Arizona is another indication that President Trump led political agenda to a rebirth of American production and to invest in the United States the most attractive place in the world” Secretary of Commerce Wilbur Ross said in a statement. With chips for many of the leading technology companies produce, TSMC has the technical know-how needed to produce semiconductors smaller, more efficient and powerful the highest bubbling volumes. It produces important components developed by Apple and most of the largest semiconductor companies, including Qualcomm Inc., Nvidia Corp., Advanced Micro Devices Inc. and China’s Huawei. Shares of Applied Materials Inc., Lam Research Corp. and KLA Corp. rose on optimism that these US supplier of equipment less export controls production of semiconductors can provide to TSMC. Concentrating skills so valuable in the hands of a company in Asia is a concern for States, in particular developing its semiconductor industry if the Taiwan Strait, China rushes. TSMC rival, Global Inc., waived advanced manufacturing and Intel Corp., the largest chip manufacturer in the world, is produced mainly. His attempt to become a so-called foundry for external customers, failed to win important customers. other main challengers unique TSMC is South Korea’s Samsung Electronics Co., which, like the $116 billion invested more in its effort to keep up with the leaders. “TSMC welcomes strong partnership with the US government and the state of Arizona continues to this project,” the company said in a statement. “This capital investment will require substantial design and technologies TSMC. The climate of strong investment in the US, and its talented workforce makes these and future investments in the United States more attractive to TSMC.” -With the help of Jenny Leonard, Daniel Stoller and Vlad Savov.
Picture copyright by Rafael Henrique-SOPA Images / Rocket Light / Getty Images