US Government Supports TSMC's Arizona Plant Plan, as per Founder

Taiwan Semiconductor Manufacturing Co.(TSMC) Founder Morris Chang stated that the company's decision to open a second plant in Arizona has been welcomed by United States Vice President Kamala Harris. She also said to Chang that the government has been very determined to help Taiwan.

Government-Approved

The decision of Taiwan Semiconductor Manufacturing Company on opening a second plant in Arizona was welcomed and supported by United States Vice President Kamala Harris, as the founder of the company Morris Chang stated during Asia-Pacific Economic Cooperation in Bangkok. Chang also stated that VP Harris also reassures him on how the US government is determined to help Taiwan. Based on a report from Bloomberg, Chang invited the US Secretary of Commerce through the Vice President, to attend the ceremony for the $12 billion plant next month.

Despite the cost of making chips will be at least 50% higher than the cost in Taiwan, this did not prevent the company from making a second manufacturing facility as Chang stated, this is very much needed not just for the United States but also for the company. This building will be used for future expansion as per previous reports.

"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," the company stated.

The United States encourages other tech firms around the world to manufacture in the country. As per a report from Reuters, the government has also been very vocal about this as it has actively supported local research, development, and manufacturing since the passing of the CHIPS Act.

Apple Sources US-Made Chips

During a meeting in Germany with retail and local engineering employees, Chief Executive Officer Tim Cook disclosed the information regarding sourcing chips from TSMC's Arizona plant in 2024. This decision from the company was made as they step up and reduce their reliance on Asian production. Cook stated, "We've already made a decision to be buying out of a plant in Arizona, and this plant in Arizona starts up in '24, so we've got about two years ahead of us on that one, maybe a little less."

Aside from Arizona, Cook is also eyeing to expand its chip supply in Europe factories soon, especially Europe is also offering incentives for chip manufacturing. No specifications were disclosed by the CEO regarding where in Europe but, as per Bloomberg's report, TSMC is currently discussing arrangements with the government of Germany regarding building a plant in the country.

Apple's exclusive chip-manufacturing partner has always been TSMC before shifting from Intel. The company is considered the chip manufacturer's biggest customer since 2014.

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Written by Inno Flores