A Taiwan-based company is planning a $12 billion semiconductor factory in the U.S. state of Arizona.
Taiwan Semiconductor Manufacturing Co. is the world’s largest contract manufacturer of computer chips.
The firm said Friday the factory will create as many as 1,600 jobs. Thousands more jobs are expected to be created along the supply lines to support production of the 5-nanometer chips.
The factory will be able to produce 20,000 of the wafers each month. They’re used in an array of consumer electronics, including the iPhones and defense equipment.
Construction of the facility is to begin next year, and the location in Arizona has not been determined.
“This project,” the company said, “is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that enables leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States.”
The firm has another U.S. factory in Washington state.
U.S. Commerce Secretary Wilbur Ross lauded the plan as showing the success of President Donald Trump’s programs.
The company’s plan to set up the facility, he said, “is yet another indication that President Trump’s policy agenda has led to a renaissance in American manufacturing and made the United States the most attractive place in the world to invest.”
Also praising the move was Secretary of State Mike Pompeo, who said the facility will “increase U.S. economic independence, bolster our safety and competitiveness, and strengthen our leadership in high-tech manufacturing.”
“This historic deal also strengthens our relationship with Taiwan, a vibrant democracy and force for good in the world,” he said.
TSMC’s stock rose more than 1.5 percent Friday morning which outperformed the 0.8 percent gain in the main Taiwan stock market.