Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has said they want to build a whole new chip making factory in the United States following record profits and worldwide demand being higher than what they can meet with just their Taiwan facility. The other location TSMC is looking at is Japan. Both places are huge consumers of the tiny microchips that are used in nearly everything we buy these days, from smartphones, vehicles, computers, smart appliances, game consoles, manufacturing equipment and so much more.
TSMC’s second quarter profits were up 28%, reaching $13.29 billion. The company is projecting third quarter revenue of $14.6 billion, both are records for the company.
According to Reuters, TSMC is looking at Arizona while other reports say the company might build near Houston, Texas. The global chip shortage and the fact that these important chips are made in Taiwan, a place China repeatedly says is part of China and is actively seeking to reintegrate by force if need be, has caused countries like the United States to begin offering incentives to manufacture chips in the United States to avoid supply problems, either natural or due to politics or war.
Regarding the global chip shortage, TSMC says that by the end of the second quarter the company expects to be able to produce a higher amount to start relieving global demand. “It takes between 4-6 months for a complete wafer of chips to be produced. So once the chip shortage became acute and they cold no longer meet demand, the company began increasing its output, but it takes time to get the increased production out the door and to customers,” said Anne Wong, a Taiwanese technology advisor.