Among the cactuses in the desert of Arizona, just outside Phoenix, an extraordinary collection of buildings is emerging that will shape the future of the global economy and the world.
The hum of further construction is creating not just a factory for the world’s most advanced semiconductors. Eventually, it will mass produce the most advanced chips in the world. This work is being done in the US for the first time, with the Taiwanese company behind it pledging to spend billions more here in a move aimed at heading off the threat of tariffs on imported chips.
It is, in my view, the most important factory in the world, and it’s being built by a company you may have not have heard of: TSMC, Taiwan Semiconductor Manufacturing Company. It makes 90% of the world’s advanced semiconductors. Until now they were all made in Taiwan, the island off the Chinese mainland. The Apple chip in your iPhone, the Nvidia chips powering your ChatGPT queries, the chips in your laptop or computer network, all are made by TSMC.
Its Arizona facility “Fab 21” is closely guarded. Blank paper or personal devices are not allowed in case designs are leaked. It houses some of the most important intellectual property in the world, and the process to make these chips is one of the most complicated and intensive in global manufacturing.
