Chip maker to invest up to $40 billion to build U.S. factories

Taiwan Semiconductor Manufacturing Company (TSMC), a Taiwanese chip and microcircuit maker, will increase its previously planned investment in the construction of two new factories in the US state of Arizona to $40 billion, one of the largest investments in US history , REUTERS reports, citing Mark Liu, the chairman of TSMC . .

Liu estimated TSMC's annual revenue at $10 billion, but said that after the opening of new factories in the US, the company's revenue could grow to $40 billion a year. He also noted that the plant in Arizona is preparing to begin production of chips using the N4 process as early as 2024, and from 2026, the production of even more advanced 3-nm chips. The expansion will create 10,000 new jobs on top of the 10,000 already employed, the TSMC chairman added.

According to the agency, the decision to almost triple the amount of initial investment in the project was influenced by US President Joe Biden , who had previously negotiated with Taiwanese partners.

TSMC is the world's largest chip manufacturer (about 50% of the world market in the production of 28-65nm components and 90% in the production of 5-10nm chips). According to the results of the third quarter, the company earned more than 70% of its revenues in North America, while revenues in CHINA amounted to only 8%.

Following a global semiconductor shortage that began last year due to the covid-19 epidemic , Biden signed into law a $52.7 billion subsidy bill for U.S. semiconductor manufacturing. In particular, they will be provided to American companies Micron, Intel, Lockheed Martin, HP and Advanced Micro Devices.

In addition, the Biden administration in October imposed restrictions on the supply of semiconductors and chip manufacturing equipment to China . EXPORT of products manufactured using American technologies for the production of artificial intelligence calculations is possible only under a special license issued by the US authorities. Under the same conditions, the cooperation of US citizens with Chinese chip manufacturers is limited. The supply of equipment and technologies to China that it could use to create its own chips is also limited.

According to experts interviewed by the FT, the new US measures could push Chinese companies back to the Stone Age. Paul Triolo, a spokesman for consulting firm Albright Stonebridge, said the restrictions would affect many companies as "the tsunami of change brought about by the new regulations will overwhelm the semiconductor and related industries."