TSMC Secures Approval For $4.5 Billion Investment In U.S. Chip Plant

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The Taiwan Semiconductor Manufacturing Company (TSMC) has won the Taiwanese government's approval to invest $4.5 billion in its new manufacturing facility in America. TSMC is building a chip manufacturing site in Arizona that is slated to start production by 2025 after a delay that the firm confirmed earlier this year. This site has been a source of considerable controversy as TSMC battles with local unions about its decision to fly in workers from Taiwan to install high end machines. Taiwan's Investment Commission is responsible for approving overseas investment plans, and today's approval comes after TSMC's board had outlined the capital injection for the Arizona site in August.

TSMC is building and operating its Arizona chip manufacturing site through its subsidiary TSMC Arizona. A subsidiary limits the exposure that a company can face from a large business division, and all funds that flow to the Arizona chip site from TSMC are through this subsidiary. TSMC had held a board meeting in Taiwan at the start of August's second week, which had seen the company approve a $4.5 billion capital injection for the U.S. chip site.

This injection was approved by Taiwan's Investment Commission earlier today and is the second such investment to have cleared the process this year. TSMC's board approved the first chunk of funds in February, and the Commisson approved the decision a month later in March. While the chipmaker's press release announcing the $4.5 billion of funds for the Arizona site did not outline the purpose, local reports from the Taiwanese press claim that they will be utilized for