In Depth: Why Is Chip Giant TSMC Investing in the U.S. When It Doesn’t Need to?

On Dec. 6, Taiwan Semiconductor Manufacturing Co. Ltd. held a “first tool-in” ceremony at a newly constructed $12 billion chip foundry in Phoenix, Arizona, in the U.S. The custom, which marks the beginning of equipment installation, is a major milestone for the site, which is set to begin production next year. On the same day, the Taiwanese giant committed to building a second fab, taking its total investment to a $40 billion.