“Higher costs are definitely a concern for TSMC,” said Andrew Tsai, chairman of Taiwan consulting firm Capital Investment Management Corp.
As a key manufacturing partner to Nvidia, Qualcomm and Advanced Micro Devices, TSMC is central to the US chip industry, and bringing more of its production to US soil would solve a major supply chain risk for those firms.
The Taiwan company could also play a central role in saving rival Intel.
Trump administration officials met Wei in New York this year about taking a majority stake in a joint venture in Intel’s factory unit, as part of a deal for several chip firms to take a stake in the venture, a source familiar with the matter said.
Intel did not respond to questions about the meetings.
For Trump, the announcement helps show voters he is fulfilling his campaign pledge to do more to bolster domestic industries and create jobs.
It is the latest in a string of such developments.
In February, Apple said it would invest US$500 billion in the next four years, although much of that was routine spending. Emirati billionaire Hussain Sajwani and SoftBank have also promised multi-billion dollar investments in the United States.
On Monday, TSMC said it looked “forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers.”
Taiwan’s cabinet said on Tuesday it would review the investment in line with its laws, which require government approval for any large overseas investment by a Taiwan company, but that it viewed overseas investments that would raise Taiwan’s overall competitiveness positively.
In addition, Taiwan’s presidential office said its review would also consider the interests of the investors and Taiwan.
“This ensures that while TSMC expands its investment in the US, the most advanced processes will remain in Taiwan,” said Karen Kuo, a spokesperson for the Presidential Office.
TSMC did not say what technology it would use in those facilities.
Last year the company agreed to produce the world’s most advanced 2-nanometer technology at its second Arizona factory, expected to begin production in 2028.
TSMC also agreed to use its most advanced chip making technology, called “A16”, in Arizona.
https://www.channelnewsasia.com/east-asia/trump-and-tsmc-announce-us100-billion-plan-build-five-new-us-factories-4974116
