Taiwanese computer chip giant TSMC announced on Friday that it will spend $ 12 billion on a state-of-the-art semiconductor foundry in the United States and create thousands of jobs.
The announcement is a win for President Donald Trump, who has pushed for major chipmakers to open a store in the U.S.
The Taiwan Semiconductor Manufacturing Company, the world's largest manufacturer of contract microchips, manufactures the processors that provide computing for everything from iPhones, laptops and game consoles to servers and critical Internet infrastructure.
Construction of the Arizona facility is scheduled to begin in 2021. Production of 5-nanometer chips – the smallest and fastest on the market – is slated to begin in 2024, said TSMC.
"This project is of crucial strategic importance … (for) leading US companies to manufacture their state-of-the-art semiconductor products in the US," said a company statement.
"TSMC welcomes the continued close partnership with the United States government and the State of Arizona on this project."
The company said the factory would create 1,600 jobs – and thousands more through supply chains – and produce 20,000 semiconductor wafers per month.
Trump is striving to reduce dependency on Asia as tensions with China over trade, tariffs, industrial espionage and national security erase.
Most of TMSC's factories are located in Taiwan. The Arizona plant will be the company's second manufacturing site in the United States.
TMSC said support was provided by both the State of Arizona and the U.S. government, but did not disclose details or the location of the facility.
Another major Taiwanese electronics company, Foxconn, announced plans to build a giant facility in Wisconsin in 2017. Trump will be there to lay the cornerstone.
However, with a smaller plant and fewer jobs than originally announced, the project fell short of expectations.
There was also a political dispute over significant tax breaks that Wisconsin Foxconn gave to set up a business.
(Except for the headline, this story was not edited by NDTV staff and published from a syndicated feed.)