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Largest Contracted Chip Manufacturer Set To Open Plant In Arizona

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Taiwan Semiconductor Manufacturing Co. (TSM - Free Report) is Silicon Valley’s go-to chip manufacturer. TSMC strategic Arizona plant will manufacture cutting-edge 5 nanometer transistors. The advanced semiconductor plant will cost $12 billion and its target completion is 2024.

This news followed the Trump Administration voicing its concern about chip-makers reliance on Asia. According to sources familiar with the matter, both the State and Commerce Department are involved with the plans.

Innovative chipmakers like Qualcomm (QCOM - Free Report) , Nvidia (NVDA - Free Report) , and AMD (AMD - Free Report) rely on TSMC for their manufacturing needs. TSMC’s move to the US marks a big win for US semiconductor companies. TSMC’s scale and manufacturing capabilities are unmatched.

Innovation-driven chipmakers are forced to use TSMC because no other fabricator can meet their requirements. TSMC has driven over 15% CAGR on its top and bottom lines since it went public in 1994. TSM shares have driven consistent growth for decades and will for decades to come.

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