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In Phoenix, Taiwanese Chip Giant Builds a Hedge Against China


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The factory the Taiwan Semiconductor Manufacturing Company is building in Phoenix.

Guests await President Biden’s visit to the factory the Taiwan Semiconductor Manufacturing Company is building in Phoenix.

Credit: Adriana Zehbrauskas/The New York Times

U.S. companies and officials have long worried about overly relying on Taiwan, which China claims as its own territory, for the world's most advanced computer chips. That's because Taiwan Semiconductor Manufacturing Company, which is the biggest maker of leading-edge chips, is based there.

Now a hedge against that risk is taking shape in — of all places — the northern outskirts of the most populous city in Arizona.

TSMC outlined a $40 billion plan on Tuesday to expand and upgrade a U.S. production hub that it is building in Phoenix. At the 1,100-acre site, where gleaming buildings bearing the company's logo are springing up among the desert shrubbery and cactus-dotted foothills, TSMC plans to import advanced manufacturing technology that has largely been limited to its factories in Taiwan.

From The New York Times
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