TSMC is the "most powerful company in the world" says the most powerful man
The president of the United States is considered the most powerful man in the world. Today, the most powerful man in the world, Donald Trump for better or for worse, called Taiwan Semiconductor Manufacturing Company (TSMC) the "most powerful company in the world." TSMC manufactures the chips that are designed by companies such as Apple (its largest customer), Nvidia, MediaTek, Qualcomm, Intel, and others.
TSMC to invest an additional $100 billion in the United States for three new fabs and more
Trump made his comment as TSMC announced that it would invest $100 billion to help grow the chip manufacturing business in the U.S. The new investment brings TSMC's total investment in the States to $165 billion and will be used to build three new fabs in Arizona along with two advanced packaging facilities and a major R&D center. This is in addition to the three fabs that TSMC already committed $65 billion to construct.
The inside of a TSMC fab which uses yellow light to keep certain wavelengths of light from interfering with lithography. | Image credit-TSMC
The first fab has already started to produce the 4nm A16 application processor (AP) for Apple making it the first A-series AP used to power older iPhone and iPad devices built in the States. By 2028, TSMC hopes to build 2nm chips in the U.S. Currently, the Taiwan company employs over 3,000 people on 1,100 acres of Arizona real estate.
"Back in 2020, thanks to President Trump’s vision and support, we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality. AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications. With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand our U.S. semiconductor manufacturing investment by an additional $100 billion, bringing our total planned investment to $165 billion."-Dr. C.C. Wei, TSMC Chairman and CEO
Apple isn't the only TSMC customer who is expected to take advantage of TSMC's U.S. chip production. A Nvidia spokesman told CNBC that the U.S. based chipmaker "will fully utilize TSMC’s global manufacturing network to enhance our supply agility and resilience." The Taiwan based company says that it will create hundreds of billions of dollars in semiconductors that will be used for AI applications and other advanced technology. The project will also result in 40,000 new construction jobs over the next four years while creating tens of thousands of high-tech jobs in advanced chip manufacturing and R&D that feature high salaries.
"Today, Taiwan Semiconductor is announcing that they will be investing at least $100 billion in new capital in the United States over the next short period of time to build state-of-the-art semiconductor manufacturing facilities," Mr. Trump said. "I think mostly it's going to be in Arizona which is what I understand, which is a great state. I like it because I won it."-President Donald J. Trump
Trump is not only attempting to make the U.S. self-sufficient when it comes to the manufacturing of integrated circuits, he also would like the U.S. to be a global hub for manufacturing semiconductors for AI which is a goal that TSMC also supports. On Monday, the president called increasing chip production in the U.S. a matter of economic and national security. The project, according to TSMC, is the largest single foreign direct investment in U.S. history.
Last July, Trump accused Taiwan of stealing the chip business of the United States
Trump's new found feelings toward TSMC probably are related to the foundry's decision to invest more money in the U.S. After all, in last year's July 16th edition of Bloomberg Business Week, Trump said, "Taiwan took our chip business from us. I mean, how stupid are we? They took all of our chip business. They’re immensely wealthy." Taiwan's economy minister Kuo Jyh-huei pointed out that TSMC is hired by U.S. companies such as Apple, Nvidia, and Qualcomm. He added that Trump probably doesn't understand what a contract foundry does.
But now that TSMC has decided to invest an additional $100 billion in the U.S., Trump is all smiles and Taiwan is no longer accused of stealing all of the United States' chip business. As for calling TSMC the most powerful company in the world, the president isn't totally wrong because without the integrated circuits produced by TSMC, companies like Apple wouldn't be able to produce the popular devices that they sell.
And by building two advanced packaging facilities in the U.S., TSMC will have a complete domestic AI supply chain ready and able to build AI chips. AI is the hottest thing going in tech right now and today's announcement shows how TSMC's presence in the U.S. will help the country become a leader in designing, manufacturing, and delivering AI chips.
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