TSMC Plans To Build A Second Factory In The US With A Total Investment Of IDR 625 Trillion

US President Joe Biden has visited the location of the first TSMC factory. (photo: Twitter @potus)

JAKARTA - Taiwan Semiconductor Manufacturing Company (TSMC) again has plans to build a second chip factory in Arizona, United States (US).

The plan, which will be carried out with the White House, will increase the company's investment in the state from US$12 billion to Rp187 trillion to US$40 billion, equivalent to Rp625 trillion.

This also reduces the dependence of the US, which often imports semiconductors. If that plan occurs, the combined two TSMC factories will generate 600,000 wafers per year.

"On a large scale, these two (factories) can meet all US demands for chips when completed. That is the definition of supply chain resilience. We don't need to rely on anyone else to make the chips we need," said US National Economic Council. Chatterji to international CNBC.

The second plant will produce a 3-nanometer (nm) chip in 2026. The expansion marks one of the largest and largest foreign direct investments in the US in Arizona.

Semiconductor chips can be used from computers and smartphones to cars, microwaves, and health care devices. The COVID-19 pandemic highlights the US dependence on Chinese manufacturers as lockdowns cause a global shortage of high-tech chips.

TSMC recently also stepped up plans at its first facility to produce 4nm instead of 5nm. The first chips will be produced there starting next year, with Apple and NVIDIA reportedly becoming the first customers.

Micron is investing $100 billion to build microchips in Syracuse.Intel is investing $20 billion to do the same in Columbus.IBM is investing $20 billion in Poughkeepsie.And TSMC is investing $40 billion right here in Phoenix. pic.twitter.com/X5U8z3LUhP

— President Biden (@POTUS) December 7, 2022

Meanwhile, US President Joe Biden visited the location of the first TSMC 6 December plant, saying CHIPS and Science Act allocated $52.7 billion in loans and other incentives, plus billions of tax credit to encourage semiconductor manufacturing investment. US.

The law aims to increase private financing in chip manufacturing in the US. Launching Engadget, Wednesday, December 7, at the same time, the European Union and the US are implementing a transparency mechanism surrounding public support provided to the chip sector.

In other words, one party will not blind others with unexpected semiconductor subsidies that could harm competition.