On Tuesday, TSMC’s board of directors approved a budget of US$5.71 billion, with the vast majority to be spent on production involving specialty and advanced manufacturing processes. TSMC is building a US$7 billion facility in Japan and is also in early talks with the German government about potentially establishing a plant in the country. It joins rivals, including Samsung Electronics Co, which is establishing a US$17 billion fab in Texas. TSMC, whose production sites are mostly in Taiwan, has started to diversify over the past few years to help meet demand in major countries seeking to bolster domestic semiconductor production. The Taiwanese company has said that it costs much more to produce semiconductors in the US, although higher expenses are manageable with state support. Washington, which is dangling incentives of about US$50 billion for local projects, has hailed TSMC’s Arizona expansion as a triumph in endeavors to bring advanced chipmaking to the US.
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