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In A Big Win For Trump, Taiwanese Chip-maker TSMC To Build $12 Billion Chip Plant In US

Taiwan’s Apple chip-maker TSMC has announced its intention, on May 15, to build a $12 billion factory of advanced semiconductor in the US state of Arizona.

Donald Trump

Taiwan’s Apple chip-maker TSMC has announced its intention to build a $12 billion factory of advanced semiconductor in the US state of Arizona, which is being considered as a big win for President Donald Trump for his aggressive pro-Taiwan policies. The chip manufacturing company said in a statement on May 15 that the construction is planned to begin in 2021 with production targeted to start in 2024.

Calling the project as a part of “continued strong partnership with the US”, the company said that it will require significant capital and technology investment from TSMC. The Asian firm hailed the “strong investment climate” in the US saying its talented workforce make the current and future investments in the US attractive to TSMC.

“US adoption of forward-looking investment policies to enable a globally competitive environment for a leading-edge semiconductor technology operation in the U.S. will be crucial to the success of this project,” said TSMC.

US State Secretary Mike Pompeo welcomed the intent of Taiwanese corporation to invest $12 billion in Arizona to develop the state-of-the-art five-nanometer semiconductor fabrication foundry. The top US diplomat said in a statement that deal is a game-changer for the US semiconductor industry which will bolster American national security and economic prosperity.

Read: Is Apple Considering A Massive Shift Of IPhone Manufacturing From China To India?

'Historic deal'

Pompeo said that the “historic deal” not only bolsters US’ economic independence but also strengthens its relationship with Taiwan. He added that the investment will create thousands of jobs for highly-skilled Americans and tens of thousands more jobs across the entire supply chain.

“TSMC’s announcement comes at a critical juncture when China is competing to dominate cutting-edge technology and control critical industries,” said the State Secretary.

The US has emerged a major supporter of Taiwan for its inclusion on international platforms including the World Health Organisations, especially after the coronavirus outbreak. In March, Trump signed the Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act into law aimed at strengthening Taiwan’s standing around the world.

Read: US Navy Sails Guided-missile Destroyer Through Sensitive Taiwan Strait

Read: US-China Commission Says Taiwan's Exclusion From WHO Caused Loss Of Lives

(Image: AP)

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