A Taiwan Semiconductor Manufacturing Co (TSMC) one of the largest semiconductor chip manufacturer revealed plans to open another manufacturing plant in the US state of Arizona, worth $12 billion dollars under its global expansion plans, reported South China Morning Post.

The move is being seen as a victory for the Trump administration who has been emphasizing on bringing in hi-tech manufacturing firms within the states which in turn would offer more direct and indirect jobs as well. The chip manufacturer struck a deal with the administration to ensure all sensitive components would be manufactured locally.

The move by TSMC could have a lasting impact on the technology ecosystem in the US since the chip manufacturer boasts of a client list that includes Apple, Qualcomm, Nvidia, Huawei Technologies and Advanced Micro Devices. The shift would also mean that these technology firms would not have to rely on China for the manufacturing of these chips. The company has weighed in cost as well as global supply chain before making a decision on opening their second manufacturing plant in the US. The company also released a statement saying,

“TSMC welcomes continued strong partnership with the US administration and the State of Arizona on this project. This project will require significant capital and technology investments from TSMC. The strong investment climate in the United States and its talented workforce make this and future investments in the US attractive to TSMC.”

TSMC also revealed that the construction of the manufacturing plant would begin in 2021 while the production of chips is scheduled to start by 2024. The firm is expecting to churn out 20,000 wafers in a month and is expected to generate 1,600 jobs.

While the federal government is ready to push the project in hopes of creating more jobs within the country and lessen their dependence on China. However, a similar initiative by the government in the form of Foxconn has so far not yielded the expected results.

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