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TSMC bets $40 billion on US-made chips Don’t claim victory.


Last Tuesday,

Taiwan Semiconductor Manufacturing

announced that it will expand its investments in Arizona to more than $40 billion—from an initial commitment of $12 billion. TSMC’s first Arizona plant will begin manufacturing 4-nanometer chips in 2024, and the second will produce 3-nanometer chips in 2026. Smaller chips are typically faster and more energy efficient than larger chips.

Forty billion is a large number, but it is not a panacea. TSMC did not give a timeframe for spending the money. And it will be a fraction of TSMC’s total capital expenditure,

JP Morgan

estimated at $100 billion between 2022 and 2024. The fabs will add to US capacity, but there are limitations. Taiwan has become a geopolitical hotspot for China and the US as it accounts for more than 90% of the world’s most advanced chip production, according to a 2021 report by the Semiconductor Industry Association and Boston Consulting Group. . Most of it comes from TSMC.

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