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The World's Largest Chip Maker TSMC Announced A USD 40 Billion Investment For The Manufacturing Of 3nm Semiconductors In Arizona, USA

Tim Cook, the CEO of Apple, stated that the maker of the iPhone would be the biggest client of the TSMC site in Arizona once production begins

 

In US history's most significant foreign direct investments, TSMC, a Taiwanese chipmaker, declared an investment of USD 40 billion for creating two fabs in Arizona.

At the same time as the proposals from TSMC were announced, tensions were starting to build between Washington and Beijing over chips, with President Joe Biden imposing a wide set of limitations on the sale of chip-making equipment and cutting-edge semiconductors to Chinese enterprises.

It was reported last year that it was in the plan of the TSMC to construct more chip-making factories in Arizona, along with talks over whether its next unit should be more refined and developed 3-nanometer chips rather than the slower, less-efficient 5-nanometer chips. As per the estimations, 90% of the most cutting-edge computer chips worldwide are produced by TSMC for companies like Qualcomm and Apple.

The action, which was defined as a historic milestone, will propel the production of domestic semiconductors in the US, along with diversifying the production facilities at TSMC.

This arrives at a stage when the semiconductor industry has suffered from macroeconomic and supply chain issues resulting in worldwide chip scarcity.

TSMC is the globe's largest contract chipmaker. The company has its headquarters in Taiwan and is presently operating on a USD 12 bn fab in Arizona that will begin with the scheduled production of its N4 chip technology in 2024.

But at the event that took place on December 6, which was attended by the president of the United States, Joe Biden, and Tim Cook, CEO of Apple, it was announced by TSMC that it had begun the construction of the second fab in Arizona.

The fab is arranged to start production in 2026 for its 3 nm chips-a technology which is used by both Apple and Intel. This will lead the total investment of TSMC in the state of the US to be USD 40 bn, the most significant FDI in Arizona history and triple the initial figure.

At the event, the CEO of TSMC, Dr. C C Wei, stated that it is a profound honour to be able to have gathered and celebrated such a historic milestone for TSMC, meaning their devotion to building a semiconductor ecosystem in the USA to serve their clients better.

The project is a true testament to the great alliance between TSMC and its clients, suppliers, and associates in order to further their partnership and unleash innovation.

According to Cook, Apple, TSMC's existing customer, will purchase processors from Arizona's new fab. And owing to many people's hard work, these chips can be proudly stamped Made in America. This is an extremely important moment.

He also confirmed via a tweet that Apple would evolve into the site's most significant consumer once the production begins. TSMC's plant opening in Arizona marked a new era for advanced manufacturing in the US.

According to Procurement Resource, the article covers the news of TSMC, the largest chipmaker in the world, announcing its USD 40 Billion Investment for The Manufacturing Of 3nm Semiconductors in Arizona, USA. The Taiwanese company is the world's largest chipmaker. It is presently operating on a USD 12bn fab in Arizona that will begin with the scheduled production of its N4 chip technology in 2024.

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