With another feather on its cap, TSMC just scored the green light for a $7.5 billion Taiwan government investment for its Arizona subsidiary, skyrocketing the latter’s total funding to $24 billion.
Taiwan Semiconductor Manufacturing Company (TSMC) has received government approval to invest an additional $7.5 billion in its US subsidiary, TSMC Arizona Corp. The Department of Investment Review, Taiwan, made this announcement recently.
The approved investment aims to enhance TSMC’s operations in Arizona, where the subsidiary manufactures, sells, tests, and designs integrated circuits and other semiconductor devices. This capital injection follows a previous $5 billion investment approved in June, bringing the total investment in TSMC Arizona to $24 billion.
TSMC is currently developing two advanced fabrication facilities in Arizona. The first fab is expected to begin mass production utilising 4-nanometre process technology in the first half of next year, while the second fab is projected to start volume production with 3nm and 2nm technology in 2028.
Additionally, TSMC plans to construct a third fab in Arizona, focused on 2nm technology. Total investments in the state are projected to exceed $65 billion.
Earlier this year, TSMC launched a fabrication facility in Kumamoto, Japan, with plans for a second plant, part of an estimated $20 billion investment. Furthermore, last month, the company broke ground on a 12-inch wafer fab in Dresden, Germany.
Despite ongoing speculation about potential overseas expansion, TSMC clarified that it currently has no new concrete plans. This clarification followed reports of discussions between TSMC executives and officials in the United Arab Emirates (UAE) regarding possible investments.
However, amid the UAE expansion rumours, the Taiwanese tech giant expressed openness to discussions that promote the development of the semiconductor industry, emphasising its focus on existing global projects.
Reports from the Wall Street Journal indicated that TSMC and South Korea’s Samsung Electronics were exploring investment opportunities in the UAE to boost global chip production and stabilise prices without harming profitability.
