Biden's Chip and Science Act has achieved one of the biggest achievements so far: Taiwan Semiconductor Manufacturing Co Ltd.

On Tuesday, Taiwan Semiconductor Manufacturing Co Ltd began work on the second phase of the plant in Arizona, USA. Taiwan Semiconductor Manufacturing Co Ltd saidInvestment in the state increased from $12 billion to $40 billion, the company's largest overseas investment and Arizona's largest investment to date.

Liu Deyin, chairman of Taiwan Semiconductor Manufacturing Co Ltd, said that the second phase of the project is expected to start producing 3-nanometer process technology in 2026, while the first phase of the project currently under construction is expected to start producing 4-nanometer process technology from 2024.When the two plants come into operation, the annual revenue is expected to reach US $10 billion, and the market value of their end products is estimated to exceed US $40 billion.

The opening ceremony was attended by US President Joe Biden, Apple Inc CEO Cook, NVIDIA Corp CEO Huang Renxun and Micron CEO Sanjay Merotra.

Cook said that when the US factory opens in 2024, Apple Inc will expand his cooperation with Taiwan Semiconductor Manufacturing Co Ltd, and the chips in most of Apple Inc's equipment will be produced at Taiwan Semiconductor Manufacturing Co Ltd's Phoenix plant:

As many of you know, we work with Taiwan Semiconductor Manufacturing Co Ltd to produce chips to power our products around the world. As Taiwan Semiconductor Manufacturing Co Ltd forms a new and deeper foundation in the United States, we look forward to expanding this work in the coming years.

Wall Street reported earlier that according to the plan, Taiwan Semiconductor Manufacturing Co Ltd's Arizona plant will first produce chips for Apple Inc's older equipment. When the second phase of the project is put into production, the 3nm process chips needed by Apple Inc can be produced.

The landing of Taiwan Semiconductor Manufacturing Co Ltd's US factory is one of the most significant results of Biden's Chip and Science Act, which includes 52.7 billion dollars in loans, grants and other incentives, as well as billions of dollars in tax credits to encourage investment in US semiconductor manufacturing.

Once Taiwan Semiconductor Manufacturing Co Ltd's plants start production, they will produce 600000 wafers a year to meet domestic demand for advanced chips, according to Ronnie Chatterji, acting deputy director of industrial policy at the National Economic Council.

This is the foundation of our personal electronic products and the future of quantum computing and artificial intelligence.

In terms of scale, these two factories will meet the entire demand for American chips in the United States. This is the definition of supply chain elasticity. We don't need to rely on anyone to produce the chips we need.

Brian Deese, director of the US National Economic Council, said:

The passage of the Chip and Science Act is absolutely crucial, providing long-term certainty for companies like Taiwan Semiconductor Manufacturing Co Ltd to expand their business.