(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. plans to spend $12 billion building a chip plant in Arizona, a decision designed to allay … Arizona is an electoral battleground and the Taiwanese company’s decision to build there could give President Donald Trump an economic win to tout to voters.“TSMC is committed to operating the WaferTech fab,” spokeswoman Nina Kao wrote in an email Friday. The facility, set to come online in 2024, will utilize TSMC’s soon-to-be-deployed 5nm process, with the ability to handle 20,000 wafers a month. The facility will have a 20,000 semiconductor wafer per month capacity, and create over 1,600 high-tech professional jobs directly. In other words, while the Zen processor you’re playing World of Tanks on isn’t likely to come from Arizona, the chip that goes into an actual tank just might. Several sites in the City of Phoenix are still being evaluated for the location of the factory. Arizona Commerce Authority will continue working with TSMC, the U.S. administration, the City of Phoenix and the Greater Phoenix Economic Council to finalize all aspects of the project.
At which point it is anticipated to employ over 1600 workers as TSMC becomes the United States’ second leading-edge foundry provider.The Arizona facility would be joining TSMC’s other US fab, which is located in Camas, Washington. But the company said it doesn’t intend to walk away from the WaferTech factory, known in the chip industry as a fab. “We’re grateful to see the continued success of the WaferTech facility in Camas and don’t have any concern presently about its continued presence and operations.”TSMC said it plans to start construction in Arizona next year and begin making chips in 2024, with expansion continuing until 2029.“TSMC’s plan to build and operate a $12 billion semiconductor facility in Arizona is yet another indication that President Trump’s policy agenda has led to a renaissance in American manufacturing and made the United States the most attractive place in the world to invest,” U.S. Secretary of Commerce Wilbur Ross said in a written statement.Note to readers: if you purchase something through one of our affiliate links we may earn a commission.The 260-acre Camas site was designed to accommodate several chip factories, but after a series of logistical problems TSMC abandoned plans for a large U.S. campus there. TSMC, one of the world's top chip making companies, is coming to the United States. This leaves TSMC trapped in the middle of matters – both figuratively and literally – as China needs TSMC to produce leading-edge chips, and the United States is now increasingly reliant on TSMC as well following GlobalFoundries’ retreat.According to TSMC, the primary impetus for building the fab – and especially to build it in the United States instead of Taiwan – is specifically to have high-end production capacity within the United States. As a result while the fab will add to TSMC’s 5nm capacity, it won’t become a massive part of that capacity. The 20,000 wafers per month throughput of the fab is well below TSMC’s largest “gigafabs” in Taiwan, which can move more than 100,000 wafers per month.
Several sites in the City of Phoenix are still being evaluated for the location of the factory. As a result, TSMC serves customers both locally and globally, particularly the United States and China, the two of which are not enjoying the best of relations right now. Given their location, TSMC’s Taiwanese fabs are seen as security risk, and the US would prefer to be self-reliant rather than relying on a foreign partner – a concern that’s been magnified by the current coronavirus pandemic and the supply chain issues that has created.At any rate, TSMC’s Arizona fab is expected to break ground in 2021, with completion scheduled for 2024. Though with an expected price tag of $12 billion, it will still be a very expensive facility to build.In a big shift to their manufacturing operations – and a big political win domestically – TSMC has announced that the company will be building a new, high-end fab in Arizona. The facility will have a 20,000 semiconductor wafer per month capacity, and create over 1,600 high-tech professional jobs directly. PHOENIX — Governor Doug Ducey today announced that following a national search, Taiwan Semiconductor Manufacturing Company (TSMC) has selected Arizona for its new U.S. advanced semiconductor factory. PHOENIX (AP) — A Taiwan-based maker of silicon chips plans to build an advanced semiconductor factory in Arizona, Gov.