TSMC Expands Arizona Production As China Threatens Taiwan Invasion

The world's leading producer of advanced computer chips, Taiwan Semiconductor Manufacturing Co. (TSMC), announced an expanded $40 billion investment in its US production hub in Phoenix.

Photo Insert: President Joe Biden visited the manufacturer's site in Phoenix and spoke about bringing jobs and investment to Arizona, calling TSMC's commitment "the largest foreign investment in the history of this state."

President Joe Biden visited the manufacturer's site in Phoenix and spoke about bringing jobs and investment to Arizona, calling TSMC's commitment "the largest foreign investment in the history of this state," Allison Morrow reported for CNN Business.

"American manufacturing is back, folks," Biden said at the event. "These are the most advanced semiconductor chips on the planet, chips that will power iPhones and MacBooks ... It could be a game changer."

TSMC produces an estimated 90% of the world's super-advanced chips — indispensable components for pretty much every device you interact with day to day, like your car and your smartphone, along with a bunch that you most likely don't, like military drones and missiles.

Some of TSMC's biggest clients include Apple, Qualcomm and Amazon. It was already building one factory, set to open late next year, but the expanded investment will add a second facility that TSMC hopes will be online in 2026.

The White House is touting the new investments as a direct result of the CHIPS bill, which Biden signed this summer.

That measure invests more than $200 billion to encourage companies to bring chip production back onto American soil. The motivation to shift production closer to home gained force on both sides of the aisle early in the pandemic.

The US pioneered the manufacture of microprocessors but outsourced production to maximize profits. TSMC is already hitting snags in its Phoenix operation, according to the Wall Street Journal. Among them are relatively higher costs to build in the US and a shortage of sufficiently trained personnel.

But there's political motivation also driving Taiwan-based TSMC to deepen ties with the United States. As tensions between Washington and Beijing escalate, the Biden administration has repeatedly underscored the US commitment to defend the island in the event of a Chinese invasion.

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