TSMC has begun construction on its $12 billion Arizona factory, an important part of efforts to revitalize the US semiconductor industry.

The COVID-19 pandemic demonstrated the danger of US industries being so reliant on oversees manufacturing for critical components, like semiconductors. As the pandemic forced factories to shut down, and slowed international trade, US companies were severely impacted. Multiple industries continue to suffer through one of the worst semiconductor shortages in history.

The Trump administration made an effort to lure chip manufacturers to the US, talking with both Intel and TSMC about opening new factories in the country. Intel has committed to building two foundries in Arizona, to the tune of $20 billion. Meanwhile, TSMC has committed to a $12 billion factory, also in Arizona.

According to U.S. News & World Report, TSMC has begun contraction on its factory, and is on track to begin volume production of its 5nm chips in 2024.