Taiwan Semiconductor Boosts US Investment After Government's Major Push Towards Self-Reliance

Taiwan Semiconductor Manufacturing Company Ltd TSM eyed a second semiconductor factory in Arizona and increased its investment there to $40 billion, the White House said ahead of a visit by President Biden.
The leading contract chip maker and Apple Inc AAPL supplier stepped up its plans for U.S. manufacturing with encouragement from the U.S. government and likely financial support from U.S. taxpayers, the Wall Street Journal reports.
Under a previously disclosed $12 billion investment plan, TSMC is already building its first factory in Arizona.
The White House shared details of a second factory planned for the site, saying construction would start in the coming year and production would begin in 2026.
The second factory will make chips with 3-nm, and TSMC's total investment in Arizona will expand to $40 billion.
The U.S.'s landmark $52 billion federal program to boost domestic chipmaking was a powerful stimulant for TSMC.
TSMC recently started making 3-nm chips in Taiwan.
The White House said the first TSMC factory in Arizona, which initially was supposed to produce 5-nm chips, would also make 4-nm chips. That factory will likely start mass production in 2024.
TSMC plans to keep the most advanced manufacturing in Taiwan.
TSMC described challenges at the Arizona site, like unexpected construction obstacles.
TSMC won Apple and Nvidia Corp NVDA as customers of the first Arizona plant.
Price Action: TSM shares traded lower by 0.21% at $81.45 in the premarket on the last check Tuesday.
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