TSMC chief executive officer C.C. Wei (second left) attends a ‘First Tool-In’ ceremony at the Arizona facility which is under construction. The company has reassured its government that the island remains the Taiwanese chipmaker’s production base. — Bloomberg
TAIPEI: Taiwan’s economy minister says that the island remains chipmaker Taiwan Semiconductor Manufacturing Co Ltd’s (TSMC) most important production base after the company announced it would more than triple its planned investment at its new Arizona plant to US$40bil (RM176bil).
TSMC’s Arizona factory has sparked concerns in Taiwan, where semiconductor manufacturing is the backbone of the economy, about a “goodbye to Taiwan” trend among chip firms.
TSMC, which makes most of its chips in Taiwan, is also building a factory in Japan.
The first Arizona chip fabrication facility will be operational by 2024 while the second facility nearby will make the most advanced chips currently in production, called “3 nanometre (3nm),” by 2026.
Speaking on the sidelines of parliament, Taiwan Economy Minister Wang Mei-hua said the island’s position as a major semiconductor producer and maker of the most advanced chips was secure.
“TSMC’s research and development centre is in Taiwan, the complete supply chain is here,” she said.
“Taiwan has a complete supply chain, a complete system and the backing of the government. It is definitely TSMC’s most important production base.”
The production of 3nm chips is already happening in Taiwan and the even more advanced 2nm and 1nm development and production in Taiwan are also on track, Wang added.
The chipmaker has repeatedly said that the bulk of its manufacturing would remain in Taiwan.
Its Taipei-listed shares were up 1.5% yesterday, outperforming the broader index.
The company is the world’s largest contract chip maker and a major supplier to several global tech firms, including Apple Inc.
US President Joe Biden has sought to boost semiconductor production at home after the Covid-19 pandemic caused supply chain problems that led to shortages of chips for vehicles and many other items.
Taiwan has been keen to show the US, its most important international supporter and arms seller in the face of mounting Chinese military pressure, that as a “like-minded democracy” it is a reliable semiconductor partner and supplier, and has supported the Arizona plans.
But the government is also rolling out more support for the chip industry at home, including proposing larger tax breaks for technology companies’ research and development to retain its competitive edge.
It is also encouraging more foreign tech firms in the chip supply chain to invest in Taiwan.
Premier Su Tseng-chang said on Tuesday that his deputy Shen Jong-chin was leading a task force to promote such investments. — Reuters
