The Taiwanese chipmaker TSMC is going to build two plants in the United States. The arrival of the factories involved 40 billion dollars – one of the largest foreign investments in US history. The news comes at a time when there is a fierce battle for chips worldwide.

The two plants are to be located in the state of Arizona. The first is expected to open in 2024, two years later the second plant should open. According to the Taiwanese company, the investment will create 10, 000 new jobs, 4, 500 of which will be at TSMC itself and the rest at suppliers. US president Joe Biden said he was very pleased with the investment.

Measured by market capitalization, TSMC is the world’s largest manufacturer of chips. The new investment will be followed with interest by the Dutch chip machine manufacturer ASML. The Eindhoven-based company is an important supplier to TSMC.

There is a lot of competition around the world for chips. During the corona pandemic, a large shortage arose, which had consequences for the automotive industry, among other things. The US and Europe want to increase chip production in their own region and have allocated a lot of money for this.

The arrival of the two Arizona plants also strengthens Taiwan-U.S. ties. China is eager to annex Taiwan, considering it a renegade province. The United States wants Taiwan to remain independent.