Despite geopolitical concerns, TSMC forges ahead with Arizona semiconductor fabs
Jul 19, 2024, 4:00 PM
TSMC said it won't consider a joint ownership venture with the United States for its Arizona fabrication facilities. (Phoenix Business Journal Photo/Jim Poulin)
(Phoenix Business Journal Photo/Jim Poulin)
Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) increased its revenue expectations amid strong demand for chips used for artificial intelligence — without changes to its current plans for Arizona and other overseas factories.
C.C. Wei, chairman and chief executive of TSMC, told investors and analysts during a July 18 earnings call that the company will continue to expand in Arizona as planned, as well as in Japan and potentially Europe despite geopolitical concerns that arose this week from comments by former President Donald Trump about Taiwan that prompted a sharp drop in its shares on Wednesday.
Trump, now the Republican presidential candidate, told Bloomberg in June that Taiwan should pay for the defense provided by the United States and also claimed that Taiwan took “100% of our chips business.”
In response to a question during the earnings call, Wei said the company would not consider a joint venture ownership with the United States for its Arizona fabrication facilities, or fabs, and would continue its current strategy for expanding outside of Taiwan.
TSMC is planning a $65 billion investment across at least three fabs in Phoenix and is on track to start operations at its first factory in Arizona by the first half of 2025. Engineering wafer production is also already underway at its first factory, which will produce 4-nanometer FinFET process technologies.
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