TSMC’s American chipmaking plans grow $25bn more ambitious

TSMC makesTSMCCHIPSTSMC about three-quarters of the world’s most cutting-edge computer chips. But even as it builds new factories (or fabs) in America and Japan, it has kept its most advanced production at home in Taiwan. Until now. On April 8th said that it intended to make “2-nanometre” chips, the current state of the art in chipmaking, at its planned fab in Arizona. It will also build a third factory in the state by 2030, on top of two already in the works. Its total American investments will rise from $40bn to $65bn. Uncle Sam will chip in another $6.6bn in grants and up to $5bn in loans.In the eyes of Gina Raimondo, America’s commerce secretary, this shows the value of the Act, a $50bn package of subsidies and tax credits aiming to revive domestic chipmaking and reduce America’s reliance on an island exposed to geopolitical and, as an earthquake this month in Taiwan reminded policymakers, seismic instability. But look closer and ’s American ambitions may not be all that grand.