According to the company's founder, Taiwan Semiconductor Manufacturing Company intends to deliver its most cutting-edge technology to Arizona.
With President Joe Biden placing a broad set of limits on the sale of cutting-edge semiconductors and chip-making equipment to Chinese enterprises, tensions between Washington and Beijing over chips are building at the same time that TSMC's intentions are being announced.
In recent months, Beijing has increased its military aggression against Taiwan, a self-governing democracy that the Chinese Communist Party claims as its own territory despite never having had control of it. This has brought attention to the crucial role the island plays in the world's chip manufacturing sector.
According to estimates, TSMC produces 90% of the most cutting-edge computer chips in the world, serving companies like Apple and Qualcomm.
At a press conference on Monday in Taipei, TSMC founder Morris Chang stated that "chips are highly significant items." Many individuals are jealous of Taiwan's chip production since it appears that people are only now becoming aware of this.
Despite having retired, Chang is still a major player in the sector. After arriving in Taipei from Bangkok, where he had attended the leaders' summit of the Asia-Pacific Economic Cooperation (APEC), he gave a press conference.
Chang met with Chinese President Xi Jinping at APEC and spoke with Vice President Kamala Harris on the semiconductor market. Harris praised TSMC for investing in Arizona.
From smartphones to washing machines, ultra-advanced semiconductor chips, like those made by TSMC, are a necessary component. A large portion of the manufacturing is concentrated in only a few number of suppliers since they are expensive to create and demand a high degree of competence.
As chip manufacturing technology develops, silicon wafers must be etched with ever-tinier transistors. The most cutting-edge TSMC technology, 3-nanometer chips, will be produced at the Arizona site, according to Chang.
The business has already committed at least $12 billion to the construction of its first plant in Arizona by 2020. At the time, the tech behemoth said that the facility will "directly create over 1,600 high-tech professional employment" and "utilize TSMC's 5-nanometer technology for semiconductor wafer manufacture." In 2024, production is anticipated to start.
At a press conference on the sidelines of APEC on Saturday, Chang stated, "I not only believe but know for a fact that the cost of manufacturing chips in the US will be at least 55% higher than in Taiwan."
"However, that does not negate the need to transfer some capacity to the US. The US considers the most sophisticated chip manufacturing method used by any corporation in the country to be critically significant.
Chang made his remarks just a few days after Berkshire Hathaway, owned by Warren Buffett, announced that it had invested $4.1 billion in TSMC.
At a time when tensions between China and Taiwan are rising, TSMC's influence in the US is growing.
The future of the island's chip industry is now a matter of concern for everyone. A disruption in Taiwan's chip supply, experts have warned, could halt the production of essential machinery, affecting almost everyone in the world.