Report: TSMC plans to bolster U.S. chip foundry efforts with new $25 billion plant

Ibm 2nm Chip
Ibm 2nm Chip (Image credit: IBM)

What you need to know

  • TSMC already had plans to spend billions on foundry building in Arizona.
  • A new report suggests TSMC is going to expand those immediate plans.
  • The report claims TSMC is considering spending $23-25 billion on a 3 nm plant.

Taiwan Semiconductor Manufacturing Co. (TSMC) has had big U.S.-based operations in the works for a while now, but new details have emerged regarding the scope of said plans. While it was known that TSMC was planning on building a 5-nanometer-capable foundry in Arizona, Reuters reports that the semiconductor manufacturer is considering spending somewhere in the neighborhood of $25 billion on a second factory capable of producing 3-nanometer chips.

It's been mentioned that up to six plants could be in the works. However, this is the first major batch of details to give a glimpse at factory efforts beyond the initially announced 5 nm plant.

According to Reuters' report, the 3 nm plant is coming with a price tag of somewhere between $23 and $25 billion. These sorts of costs will potentially be subsidized by the U.S. government, as President Joe Biden has made it clear he intends to get involved in helping alleviate the current semiconductor crisis. This would mean that TSMC and Intel will be vying for the same subsidies.

The news about TSMC's U.S. strategy comes alongside additional news that the manufacturer's European plans aren't panning out.

What exactly TSMC will end up doing remains to be seen, but if this report is anything to go by, it looks like U.S.-based chipmaking will see big gains in the coming years. That's not surprising, though: Most countries — especially China — are looking to up their chip output as the world becomes more and more dependent on technology for virtually every facet of daily life.

Robert Carnevale is the News Editor for Windows Central. He's a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author of Cold War 2395. Have a useful tip? Send it to robert.carnevale@futurenet.com.

3 Comments
  • American's believe
    Build in america with plants of asian company.
    Win technology "war" with public subvention.
  • Rather like Ariane, Airbus, PAL, Eurofighters, Galileo, bananas, etc, isn't it?
    Not as much fun when others play the subsidy game too, is it?
  • As the article said, they can't let all that government largesse go only to Intel, Micron, IBM, etc.
    Plus building big in the US will mean they'll still have access to world markets after China takes over Taiwan. Safer than the EU which is still waffling over China.
    Companies have survival instincts.