A vast semiconductor facility is rising in Arizona’s desert, aiming to become the world’s most advanced chip-making hub. Built by Taiwan Semiconductor Manufacturing Company (TSMC), the factory, known as Fab 21, represents a major shift in global manufacturing. TSMC, which produces 90% of the world’s advanced semiconductors, is expanding to the U.S. for the first time, pledging an additional $100 billion investment.
Strategic Move Amid Geopolitical Tensions
TSMC’s U.S. expansion comes amid fears of supply chain vulnerabilities and growing tensions between China and Taiwan. The company’s original model, centralizing production in Taiwan, made it a cornerstone of Taiwan’s “Silicon Shield” defense. However, COVID-19 disruptions exposed the risks of geographic concentration. Western governments, led by the U.S., are now working to decentralize chip production.
Trump’s Tariff Threats and Biden’s Chips Act
TSMC’s U.S. leadership says the expansion was long in development and primarily supported by the Biden administration’s Chips Act. Photos of President Biden’s 2022 visit are prominently displayed at the site, signaling bipartisan support for the project. President Trump credits his tariff threats with influencing TSMC’s decision, calling the Arizona plant proof of his “America First” economic strategy.
Technological Marvel in the Desert
Inside Fab 21, the production process is staggeringly complex. Workers operate in cleaner-than-hospital conditions to manufacture 4-nanometre chips with up to 14 trillion transistors per wafer. These chips power everything from iPhones to AI applications like ChatGPT. The technology requires machinery from Dutch firm ASML, with components sourced from Europe and Asia.
Supporters See Strength, Critics See Contradictions
Supporters hail TSMC Arizona as vital for U.S. tech sovereignty and economic resilience. Tech leaders like Apple’s Tim Cook and Nvidia’s Jensen Huang praise the facility’s potential. However, critics question the effectiveness of tariffs and warn that efforts to localize chip production clash with the inherently global nature of the supply chain. Others argue the U.S. may not match Taiwan’s specialized know-how.
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The secretive US factory that lays bare the contradiction in Trump’s America First plan
Photo by Maxence Pira on Unsplash
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