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TSMC triples Arizona plant investment to $40 billion

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Taiwanese chipmaker TSMC said it would more than triple its planned investment at its new Arizona plant to $40 billion - making it one of the largest foreign investments in US history.

The expanded investment is a big win for Biden after supply chain issues disrupted the US economy early in his presidency.

"We work with TSMC to manufacture the chips that help power our products all over the world. And we look forward to expanding this work in the years to come as TSMC forms new and deeper roots in America," Apple CEO Tim Cook said. TSMC, the world's largest contract chipmaker, is a leading supplier to major U.S. hardware manufacturers. Its $40 billion funding for the two facilities is the company's largest investment outside of Taiwan.

TSMC also said it was planning to build an industrial water reclamation plant. Chip making is a water-intensive process, and Arizona, which is largely desert, is increasingly struggling with water shortages. US semiconductor production accounts for just 12% of the global total, down from 37% two decades ago, said a White House report on supply chain problems last year.

 

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