TSMC is considering establishing a major semiconductor manufacturing plant in Texas, which could bring tens of billions of dollars in new investment to the state as demand for artificial intelligence chips continues to rise.
The Texas project is still in its early stage but might involve several semiconductor manufacturing plants, one source close to the matter has said. Since each manufacturing plant would cost at least $20 billion, the project would become one of the largest possible semiconductor investments in Texas.
TSMC, which is a major chip producer for firms such as Nvidia, Apple and Advanced Micro Devices, is looking into adding more manufacturing capacity abroad since AI companies are placing ever-larger orders for advanced chips. So far this year North American customers have made up more than 75% of TSMC’s wafer revenue.
The company has already invested $265 billion in its manufacturing site in Arizona, which includes several fabrication plants currently being developed. Furthermore, TSMC is expanding internationally by means of projects in Japan and Germany.
Investment in Texas would contribute to the state’s increasingly developed semiconductor industry, which currently includes Samsung Electronics’ major manufacturing operations as well as planned advanced chip projects.
The Texas project has not yet been finalized. The report says that the decision might, to some extent, depend on the extension of a U.S. advanced-manufacturing tax credit which supports investments in semiconductors. It is also reported that TSMC is considering other locations, such as Singapore, as it looks at its future manufacturing capacity.
Source: The Business Times
Original Link: https://www.businesstimes.com.sg/international/tsmc-mulls-multibillion-dollar-texas-campus-more-ai-chips