Taiwan Semiconductor Manufacturing Co Ltd (2330.TW), the biggest contract chipmaker, said it plans to build a $12 billion factory in Arizona in an apparent win for the Trump administration’s efforts to wrestle global tech supply chains back from China.
Trump has long pledged to bring manufacturing back from overseas and now a steep economic slump brought on by the coronavirus is driving a government-wide push to end U.S. production and supply chain dependency on China.
TSMC is a major supplier to U.S. tech giants such as Apple Inc (AAPL.O) and Qualcomm Inc (QCOM.O), as well as Chinese firms like Huawei Technologies [HWT.UL], which Washington has put on a trade blacklist.
“This project is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that enables leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States,” TSMC said.