TSMC's Arizona plant sparks concern in Taiwan

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TSMC's Arizona plant sparks concern in Taiwan

TSMC's Arizona factory has sparked concerns in Taiwan, where semiconductor manufacturing is the backbone of the economy, about a goodbye to Taiwan trend among chip firms. TSMC, which makes most of its chips in Taiwan, is building a factory in Japan.

The first Arizona chip fabrication facility, or fab, will be operational by 2024, while the second facility nearby will make the most advanced chips currently in production, called 3 nanometres, by 2026.

Wang Mei-hua, Taiwan Economy Minister, said the island's position as a major semiconductor producer and maker of the most advanced chips was secure, as a result of the island's position as a major semiconductor producer and maker of the most advanced chips.

She said that the complete supply chain is here, because TSMC's research and development centre is located in Taiwan. Taiwan has a complete supply chain, a complete system, and the backing of the government. It is TSMC's most important production base. The production of 3 nm chips is already on track in Taiwan, and the even more advanced 2 nm and 1 nm development and production in Taiwan are on track, Wang said.

Taiwan Semiconductor Manufacturing Co Ltd, as it is formally called, has stated that the bulk of its manufacturing will remain in Taiwan.

TSMC's Taipei-listed shares were up 1.5% on Wednesday morning, beating the broader index.

The world's largest contract chip maker is a major supplier to global tech firms, including Apple Inc.

U.S. President Joe Biden has tried to boost semiconductor production at home after the COVID 19 pandemic caused supply chain problems that led to shortages of chips for vehicles and many other items.

Taiwan has been trying to show the United States, its most important international supporter and arms seller, in the face of growing Chinese military pressure, that as a like-minded democracy it is a reliable semiconductor partner and supplier and has supported the Arizona plans.

The government is proposing larger tax breaks for technology companies' research and development to retain its competitive edge, as well as more support for the chip industry at home.

More foreign tech firms are encouraged to invest in Taiwan, as well as in the chip supply chain.

Premier Su Tseng-chang said late on Tuesday that his deputy Shen Jong-chin was leading a task force to promote such investments.