Taiwan Semiconductor Manufacturing Company plans to bring its most advanced technology to Arizona, the chip giant’s founder said Monday.

TSMC’s plans come as tensions between Washington and Beijing over chips escalate, with President Joe Biden imposing a broad set of controls on the sale of advanced chips and chip-making equipment to Chinese companies.

Taiwan, a self-governing democracy that the Chinese Communist Party claims as its own territory even though it has never controlled it, has also faced increasing military aggression from Beijing in recent months, underscoring the critical role it plays. the island in the global chip manufacturing industry. .

TSMC accounts for about 90% of the world’s super-advanced computer chips and supplies tech giants like Apple and Qualcomm.

“Chips are very important products,” TSMC founder Morris Chang told a news conference in Taipei on Monday. “It seems like people are only starting to realize this recently, and as a result, a lot of people are envious of Taiwanese chip manufacturing.”

Chang retired but remains an influential force within the industry. He was briefing reporters after returning to Taipei from Bangkok, where he represented Taiwan at the Asia-Pacific Economic Cooperation (APEC) leaders’ meeting.

At APEC, Chang discussed the semiconductor industry with Vice President Kamala Harris and also met with Chinese President Xi Jinping. Harris welcomed TSMC’s investment in Arizona, she said.

Super-advanced semiconductor chips, like those produced by TSMC, are an indispensable part of everything from smartphones to washing machines. They are also difficult to manufacture due to the high cost of development and the level of knowledge required, which means that much of the production is concentrated in just a handful of suppliers.

Advances in chip manufacturing require etching ever smaller transistors onto silicon wafers. Chang said his plant in Arizona will produce 3-nanometer chips, TSMC’s most advanced technology.

In 2020, the company had already committed at least $12 billion to build its first facility in Arizona. At the time, the tech giant had said that the facility “will use TSMC’s 5-nanometer technology for semiconductor wafer manufacturing” and “will directly create more than 1,600 high-tech professional jobs.” Production is expected to start in 2024.

“I not only believe, but I know for a fact that the cost of making chips in the US will be at least 55% higher than in Taiwan,” Chang told a press briefing on the sidelines of APEC on Saturday.

“But that doesn’t mitigate moving some of the capacity to the US. The chip manufacturing process we’re moving to is the most advanced of any company in the US, and that’s very important to the US. .UU.”

Chang’s comments come just days after Warren Buffett’s Berkshire Hathaway revealed it had bought a $4.1 billion stake in TSMC.

The increase in TSMC’s presence in the US comes at a time when tensions between China and Taiwan are rising.

The fate of the island’s chip industry has become a global concern. Experts have warned that any interruption in the supply of chips from Taiwan could paralyze the production of key equipment, affecting almost the entire world.

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