(Reuters) – Taiwan Semiconductor Manufacturing Co Ltd (2330.TW), the biggest contract chipmaker, said it plans to build a $12 billion factory in Arizona in an apparent win for the Trump administration’s efforts to wrestle global tech supply chains back from China.
FILE PHOTO: A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan August 31, 2018. REUTERS/Tyrone Siu/File Photo
The plan, which will create over 1,600 jobs, comes as U.S. President Donald Trump steps up criticism of Chinese trade practices and Beijing’s handling of the novel coronavirus ahead of the Nov. 3 U.S. presidential election.
Trump has long pledged to bring manufacturing back from overseas and now a steep economic slump brought on by the coronavirus is driving a government-wide push to end U.S. production and supply chain dependency on China.
U.S. Secretary of Commerce Wilbur Ross touted the deal as “another indication that President Trump’s policy agenda has led to a renaissance in American manufacturing.”
TSMC is a major supplier to U.S. tech giants such as Apple Inc (AAPL.O) and Qualcomm Inc (QCOM.O), as well as Chinese firms like Huawei Technologies [HWT.UL], which Washington has put on a trade blacklist.
“This project 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,” TSMC said.
While huge in terms of foreign investment in the United States, the plan is small by TSMC’s standards. For 2020, TSMC’s capex p