Tuesday, September 19th 2023
TSMC to Invest Additional $4.5 Billion at Arizona Fab
TSMC has gained the Taiwanese government's approval to invest $4.5 billion in its main North American manufacturing hub—Fab 21 is located in the greater Phoenix area. Mass production at the Arizona foundry has been delayed into 2025 due to behind-schedule equipment installations and various workforce-related issues, but a limited trial run is reported to begin early next year. Mid-last month, the TSMC executive board sought approval from Taiwan's Investment Commission for an additional overseas spend (the Arizona operation is registered as a subsidiary company).
This request was approved by the commission yesterday (September 18)—a $3.5 billion cash injection was already given the thumbs-up back in March. Exact areas of expenditure have not been declared to the public, but Taiwanese media outlets believe that the second phase of funds will be marked for working capital expenses at the North American division. Short-term business costs include the purchase of inventory (e.g raw materials), day-to-day operating expenses and resolvement of short-term debts. Mark Liu, TSMC's chairman, recently expressed optimism about goings-on at Arizona's Fab 21—mentioning significant progress made over the spring and summer period.
Sources:
UDN Taiwan, Wccftech, Fronteras (image source)
This request was approved by the commission yesterday (September 18)—a $3.5 billion cash injection was already given the thumbs-up back in March. Exact areas of expenditure have not been declared to the public, but Taiwanese media outlets believe that the second phase of funds will be marked for working capital expenses at the North American division. Short-term business costs include the purchase of inventory (e.g raw materials), day-to-day operating expenses and resolvement of short-term debts. Mark Liu, TSMC's chairman, recently expressed optimism about goings-on at Arizona's Fab 21—mentioning significant progress made over the spring and summer period.
6 Comments on TSMC to Invest Additional $4.5 Billion at Arizona Fab
For comparisons sake, the last pipeline project I was involved in several years ago was ~130 miles long (give or take) and the costs for the pipe & fittings alone was in excess of $700M....which was mostly 36", some 24" and the rest 18" corrosion-proof, cathodically-protected 316-grade Stainless Steel, but did NOT included the valves, pumps, compressors, metering & regulator stations or other ancillary parts or costs...
Just sayin, hey TSMC, this is your bankers calling, and we are NOT in a good mood, hehehe !
I mean, it even pays for itself in some years compared to moving water by truck
But I agree, a few billion here, a few billion there....TSMC will quickly get that money back, and moar, once the fab is online, and the state will get a substantial increase in tax collections from all the new employees buying stuff, building houses etc :)