TSMC, the iPhone chip maker to invests $40 billion in Arizona plants

TSMC, the computer chip giant said that it will increase its investment to more than triple in a giant US plant to $40bn.

This investment is one of the largest foreign investments in American history. The announcement came as the boss of the Taiwan-based firm and President Joe Biden opened the factory in Arizona. To bring onshore production of key components in everything from military jets to phones the Biden administration is pushing ahead with plans.

TSMC is the world’s largest micro-chips maker for other companies, including clients like tech giant Apple. The company’s Arizona plants will produce 4-nm and 3-nm chips used for iPhone processors. Semiconductors are sometimes referred to as the "brains" of electronics and TSMC’s chairman, Mark Liu said that the firm is building two semiconductor fabrication plants, and the first one is expected to be online by 2024. The overall investment of TMSC in this will be approximately $40 billion and is the largest investment the company has ever made outside of Taiwan.

The investment is a boost for President Joe Biden following supply chain disruption amid growing tensions between China and the US that has led to chip shortages.