The US is committed to establishing semiconductor manufacturing within its borders, and perhaps no effort is more crucial to this goal than TSMC’s three-fab facility in Arizona. The US government has invested billions into the development, alongside TSMC’s investment.
Taiwan Semiconductor Manufacturing Co. has reached a significant milestone in its expansion into the US. Recent trial production at the company’s new Arizona facility has yielded results comparable to those of its established plants in Taiwan. This development is a positive sign for the chipmaker’s ambitious US project, which has faced delays and doubts about whether it could match the production efficiency of its Taiwanese operations.
The Arizona plant began engineering wafer production in April using advanced 4-nanometer process technology. With production yields now on par with its facilities in Tainan, Taiwan, TSMC can maintain its targeted gross margin rates.
TSMC plans to invest heavily in three plants in Arizona. The US government is providing substantial support through grants and loans. TSMC’s Arizona facility is on track to begin production at its first fab in the first half of 2025. The second fab, set to start production in 2028, will produce chips using advanced process technology. The third fab will focus on even more advanced processes.
Recent success in trial production has alleviated concerns about TSMC’s ability to maintain efficiency with its US operations compared to its facilities in Taiwan. The Arizona project is progressing as planned.
The expected timeline for the three fabs is as follows:
Taiwan Semiconductor Manufacturing Co. (TSMC) has achieved a significant milestone in its US expansion, with its Arizona facility reaching production yields comparable to those of its Taiwanese plants. This development is a positive sign for the chipmaker’s ambitious US project, which has faced delays and doubts about its production efficiency.
TSMC’s Arizona project was initially delayed due to workforce challenges, including difficulties in finding skilled workers locally and cultural differences between Taiwanese management and American employees. However, recent success in trial production has alleviated some of these concerns, with TSMC confirming that the project is progressing as planned.
The success of TSMC’s Arizona facility is a major boost to the US government’s efforts to establish semiconductor manufacturing within its borders. With TSMC’s investment and the government’s support, the US is taking a significant step towards becoming a major player in the global semiconductor industry.