Taiwan based and world’s largest contract chip manufacturer Taiwan Semiconductor Manufacturing Co Ltd (2330) has made public its plans to build a chip plant in Arizona, the plant will cost an estimated cost of $12 billion.
This move is seen of having been inspired by attempts from U.S government to shift the supply chain of chips from china to the United States.
This plan will go down on record as one of the largest inbound investments in the United States additionally the project will create 1,600 jobs from the onset.
President Trump has been taking tremendous steps to fulfill his pledge of shifting back production from oversees especially China to United States. U.S. Secretary of Commerce Wilbur Ross, says the plans shows Trump is on track to implementing his agenda.
“The deal is another indication that President Trump’s policy agenda has led to a renaissance in American manufacturing,” said Ross.
On their side TSMC believes the deal will propel the company even penetrate further the U.S market. “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,” said TSMC.
For the longest time now TSMC has been the major supplier of chips to multiple reputable U.S tech companies among them Apple Inc. (AAPL) and Qualcomm Inc. (QCOM).
The chip-maker says such plans were in its long term goals as it was anticipating building a chip plant in the U.S in the next nine years but thanks to Trump’s administration the goal has will be realized sooner than expected.
An official in the U.S commerce department said decision by TSMC to transfer production to U.S portrays good will at the department and that later a law will be implemented restricting TSMC from selling chips to Chinese tech giant Huawei Technologies.
Moments after the announcement of the deal, shares of TSMC spiked by over 1.5% clinching a market capitalization of $255 billion surpassing that of U.S based chip maker Intel Corp. (INTC) to become the most valuable chip manufacturer in across the world.