TSMC secures approval for USD 20 billion Arizona expansion
Taipei, July 3
Taiwan Semiconductor Manufacturing Co. has received official clearance to inject USD 20 billion into its wholly owned subsidiary in Arizona.
According to a news report by Focus Taiwan, the approval was one of nine major domestic and overseas investment projects cleared by the MOEA's Department of Investment Review at a meeting Thursday.
This latest round of funding marks the sixth time the department has approved TSMC investments in the United States. The decision pushes the total amount cleared for the semiconductor giant's American operations to USD 44 billion. Government officials outlined the specific manufacturing goals tied to this new wave of capital.
The latest funding will be used to build a 12-inch wafer fab and an advanced packaging plant in Arizona, with further details to be announced by TSMC, the department said.
The chipmaker's USD 20 billion allocation made up the vast majority of the total international financial packages processed during the session. In total, the regulatory department approved seven outbound investment projects worth approximately USD 23.05 billion.
Beyond the semiconductor sector, several other major tech and manufacturing firms secured permission to expand their global funding. Nanya Technology Corp. won approval to inject USD 1 billion into its British Virgin Islands subsidiary, Nanya Technology International Ltd. The news report explained that this move aims mainly to invest in US dollar time deposits and reduce foreign exchange hedging costs.
Electronics manufacturer Quanta Computer Inc. cleared hurdles to invest USD 600 million into Cayman Islands-based Quanta International Ltd. The capital will eventually flow into US-based Quanta Manufacturing Inc. to support computer and peripheral assembly operations.
Furthermore, Lite-On Technology Corp. received approval for a USD 919 million capital injection into its US subsidiary, Lite-On Inc., targeting the manufacture and sale of optoelectronic products and server power solutions.
The review board also finalized several other outbound packages. These included an internal US restructuring by Formosa Plastics Corp., a 1.6 billion Thai baht (USD 49.48 million) expansion by Taiwan Union Technology Corp. in Thailand, and a £143 million (USD 193 million) capital injection by Fubon Life Insurance Co. into its Jersey subsidiary for real estate leasing operations.
Additionally, inbound capital flows into Taiwan received clearance during the same meeting. The department authorized two foreign investment projects in Taiwan worth a combined NT$6.75 billion (USD 211.43 million).
This package included an NT$3.58 billion (USD 118 million) capital injection into Eli Lilly Taiwan by its Dutch parent, Lilly Nederland Holding B.V., alongside an NT$3.17 billion (USD 104.6 million) investment by U.K.-registered Formosa 6 Holdings Company Ltd. into Formosa 6 International Investment Co., Ltd.
— ANI
Reader Comments
It's remarkable to see this level of commitment from TSMC. As someone who follows global supply chains, shifting critical chip manufacturing back to North America is strategic. But I worry about the geopolitical tensions this creates with China over Taiwan. Hopefully diplomacy will prevail.
$44 billion is no joke! Meanwhile, our government announces PLI schemes for semiconductors but actual ground-level progress is slow. Taiwan knows how to play the game - diversify manufacturing while keeping core R&D at home. We need that kind of strategic thinking in New Delhi.
Interesting how this is happening while China's chip sector is under severe US restrictions. Taiwan is caught in the middle but seems to be positioning itself well. India must accelerate its semiconductor mission - our digital future depends on it!
Wafer fabs and advanced packaging plants... This is what we need to build in India! Our IT services sector is world-class but we're still importing most chips. Atmanirbhar Bharat should mean making our own silicon, not just assembling phones.
As an economist, this is exactly the kind of reshoring that's reshaping global trade. But let's be honest - $44 billion is massive even for TSMC. Question is whether this makes financial sense given US labor costs vs Taiwan. The CHIPS Act subsidies are clearly the driver here.
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