TSMC plans second chip factory in Arizona

TSMC, the world’s largest contract chipmaker and a major supplier to Apple Inc, said it was constructing a building that could serve as its second chip factory in Arizona in the United States.
TSMC for iPhonesTaiwan Semiconductor Manufacturing said it could use the building for future expansion but has not yet arrived on a final decision for a second chip manufacturing plant, Reuters news report said.

“In light of the strong customer demand we are seeing in TSMC’s advanced technology, we will consider adding more capacity in Arizona with a second fab based on operating efficiency and cost economic considerations,” TSMC said.

The Wall Street Journal first reported that TSMC’s investment in Arizona is expected to be around $12 billion which it committed two years ago.

The United States has been encouraging foreign tech firms to manufacture in the country and has actively supported local research, development and manufacturing after passing its CHIPS Act.

TSMC said its revenue for January through September 2022 totaled NT$1,638.36 billion, an increase of 42.6 percent compared to the same period in 2021.

TSMC in October said it will cut its capital expenditure (Capex) to around $36 billion for 2022. In July, TSMC said it would skim the lower end of its previous Capex guidance of $40 billion to $44 billion this year, with some expenses pushed to next year because of a delay in the delivery of some chip-making equipment.