In May 2020, TSMC announced it would build a new $ 12 billion plant in Phoenix, Arizona. Today Reuters reports that the company is planning to build five additional plants.
According to a source, the expansion comes up request from the US government. Another source, however, points out that TSMC made sure there was enough room for future expansion when it acquired the land where the plant will be built. A third source, a supplier to TSMC, reveals that the plan was to build six factories over three years.
Additionally, in an earnings call last month, CEO CC Wei hinted at the possibility of this expansion:
We actually acquired a large plot of land in Arizona for more flexibility. So further expansion is possible, but we will move on to Phase 1 first, then based on operational efficiency, cost economy and customer demand, we will decide what the next steps will be.
READ ALSO: TSMC begins construction of the new plant in Arizona
We are currently experiencing a period characterized not only by a pandemic, but also by one worldwide chip shortage which has affected several sectors. It is therefore not surprising that both the Trump administration and the current Biden administration have pushed to increase manufacturing capacity in the United States. TSMC recently announced that it will spend $ 100 billion over the next three years to expand its manufacturing capacity. At the moment, however, it is not clear how much the investment in Arizona will be and what it could change for Apple.