TSMC to up Arizona investment to $40 billion with second semiconductor chip plant

US President Joe Biden arrives to speak on rebuilding US manufacturing through the CHIPS and Science Act at the groundbreaking of the new Intel semiconductor manufacturing facility near New Albany, Ohio, on September 9, 2022.

President Joe Biden will join the founder of Taiwan Semiconductor Manufacturing Co. on Tuesday to announce the opening of a second chip plant in Arizona.

More technically advanced chips will be produced by the company. One of the largest foreign investments in the U.S. is by TSMC.

Semiconductor chips are used in a lot of things. The Covid-19 outbreak shone a light on the U.S. dependence on Chinese manufacturers, which led to a global shortage of high tech chips.

Billions were allocated to lure manufacturers to produce chips domestically after Biden signed the CHIPS and Science Act. Billions of dollars in tax credits and other incentives are included in the law to encourage investment in the U.S.

According to the National Economic Council acting deputy director for Industrial Policy, 600,000 wafers per year will be produced by the TSMC plants once they open.

Chatterji said that it was the foundation of personal electronics and also the future of quantum computing and artificial intelligence. The twofactories could meet the entire U.S. demand for chips when they are finished. The definition of resilience is that. We won't have to depend on anyone else to make the chips.

The National Economic Council director said that the passage of the CHIPS and Science Act was critical in providing the long term certainty for companies like TSMC.

Private investment in chip manufacturing was the goal of the legislation. The CEOs from companies that will benefit from U.S. chip production will be present.

CEOs of major companies are making decisions about their plans 18 to 24 months forward. The build out in the US gives them more confidence.

The first plant in Phoenix is expected to begin making chips in about four years. It will make 4 nanometer chips instead of 5 nanometer chips. The most cutting-edge chips currently available will be produced at the second plant.

Arizona's economy was hit hard by the Pandemic and the opening of the plants will help. The unemployment rate in Phoenix was 6.5% in 2020 when over 9000 people filed for bankruptcy. The unemployment rate in Phoenix has dropped. The state's economy grew at the highest rate in 16 years in 2011.