Taiwan Semiconductor Manufacturing Company (TSM) has broken ground on its new $20 billion plant in Arizona, marking a significant milestone for the US chip fabrication industry. The facility, set to start production in 2025, will produce advanced 4-nanometer chips at a rate of 20,000 wafers per month.
Despite initial projections of $12 billion, the project’s cost has ballooned due to various factors, including worker shortages and infrastructure demands. To address these challenges, TSMC is sending 600 US engineers to Taiwan for training to overcome a skills gap.
The plant’s development comes as the US seeks to reduce its reliance on overseas chip production due to supply chain risks and geopolitical instability. The CHIPS Act, a bipartisan initiative worth $52 billion, has played a crucial role in supporting TSMC’s expansion in the US. Despite recent comments from President-elect Donald Trump suggesting opposition to the act, Commerce Secretary Gina Raimondo stated that she believes it will not be canceled.
Analysts are optimistic about TSM’s future prospects, with a Strong Buy consensus rating based on five Buys assigned in the last three months. The average price target implies 16.7% upside potential, and shares have gained over 93% year-to-date.
Source: https://www.tipranks.com/news/tsms-arizona-plant-marks-a-historic-milestone-for-u-s-chip-manufacturing