Just days after President Trump announced that he was working with technology companies to further develop America’s manufacturing sector, Taiwan’s largest corporation and the worlds largest independent semiconductor foundry has stated they plan to build a massive production facility in the United States.
The company, Taiwan Semiconductor Manufacturing Company (TSMC), produces integrated circuits (microchips), and has just announced they plan to build a $12 billion factory in Arizona.
The domestic production of semiconductors has been a top priority of the Trump administration for a long time. In 2017, Trump blocked the sale of an American chip manufacturer that was being targeted for takeover by China-backed Canyon Bridge Capital Partners.
Semiconductor related stock took a small hit this week following fears that China may retaliate for the administration targeting Huawei. Last year, Trump banned the export of US technology to Chinese tech giant. The battle between China and the Trump administration continues, however, as a loophole allowing Huawei to buy chips made outside the US—but still with US software—is now in the administrations crosshairs.
That makes the timely announcement from TSMC particularly beneficial to Trump’s goals. TSMC says that they will be up in running in just a couple years and that the Arizona factory will be able to produce the most bleeding-edge nanometer chips.