TSMC board approves $3.5 billion investment for US fab project

insider trading

TSMC has allocated a US$3.5 billion budget for setting up a subsidiary in Arizona, where the pure-play foundry plans to build a wafe fab using 5nm process technology.

The foundry said on Tuesday its board of directors approved “an investment to establish a wholly-owned subsidiary in Arizona, United States of America, with a paid-in capital of US$3.5 billion.”

TSMC’s Arizona fab project, announced in May this year, is expected to start construction in 2021 followed by production in 2024, industry sources believe. The foundry has reportedly appointed the director for the new fab, selected team candidates and started hiring for the US project.

But TSMC has not made any announcements regarding the progress of construction of the Arizona fab.

TSMC said its board of directors also approved capital appropriations of about US$15.1 billion for the installation and expansion of advanced technology capacity, installation of specialty technology capacity, installation and upgrading of advanced packaging capacity, as well as fab construction, installation of fab facility systems and capitalized leased assets, and first-quarter 2021 R&D capital investments and sustaining capital expenditures.