TSMC is to build a $12 billion 5nm 20k wpm fab in Arizona.

The US government has been pressuring the company to build a fab in the USA after worries about US reliance on Asian fabs for advanced chips.

“This project is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that enables leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States,” says TSMC.

Construction of the Arizona fab is begin in 2021 with first silicon in 2024, and it will be set up to run 20k wpm. TSMC’s fabs in Taiwan are five times bigger – running 100k wpm – and, by 2024, TSMC’s most advanced process will be 3nm. The investment will be made from 2021 to 2029.

Another plus for the US government is that, according to U.S. Secretary of Commerce Wilbur Ross, it is “another indication that President Trump’s policy agenda has led to a renaissance in American manufacturing.” The fab will employ 1,600 people.

TSMC’s capex budget for this year is $15-16 billion