Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to build and operate an advanced semiconductor fab in Arizona, with support from the US Federal Government.

The new facility will utilise TSMC’s 5-nanometer technology for semiconductor wafer fabrication and have a 20,000-semiconductor wafer per month capacity.

Construction is due to start next year, with production targeted to begin in 2024. Total spending on the project, including capital expenditure, will be approximately $12bn.

“This project is of critical, strategic importance to a vibrant and competitive US semiconductor ecosystem that enables leading US companies to fabricate their cutting-edge semiconductor products within the US and benefit from the proximity of a world-class semiconductor foundry and ecosystem,” the company said in a statement.

TSMC welcomes continued strong partnership with the US administration and the State of Arizona on the project.

In the United States, TSMC currently operates a fab in Camas, Washington and design centres in both Austin, Texas and San Jose, California.