Taiwan processor chip maker to set up $3.5 billion U.S. arm

TAIPEI, Taiwan : A Taiwanese maker of processor chips for Apple Inc. and other customers plans to invest $3.5 billion to set up a U.S. subsidiary amid American concern about relying too heavily on sources in Asia for high-tech components.

Taiwan Semiconductor Manufacturing Co., the world’s biggest contract producer of semiconductors, said its board approved the plan Tuesday to set up the subsidiary in Arizona. It gave no details of what functions it will perform.

U.S. officials worry their country relies too too heavily on factories in Taiwan, South Korea and China for semiconductor chips used in smartphones, medical equipment and other products. Those anxieties increased after the coronavirus pandemic disrupted global shipping.