Taiwan Semiconductor Manufacturing Co Ltd, a major supplier to Apple Inc, announced on Friday it will build a US$12 billion chip factory in Arizona, in what the company called a"strong partnership" with the U.S. government.
TSMC said in a statement that construction on the facility would begin in 2021 and that it would be able to process up to 20,000 silicon wafers per month. Each wafer can contain thousands of individual chips. The move comes after the Commerce Department drafted a rule that, if implemented, could severely restrict sales of chips by TSMC to blacklisted Chinese telecoms equipment maker Huawei, a key customer. One of the two sources, a Commerce Department official, said the decision to locate the plant in the United States generates"good will" at the department.
While Intel has major manufacturing operations in the United States, it supplies only its own chips rather than making them for outside customers.
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