HomeTech NewsTSMC to spend billions more to build 3nm fab in Arizona

TSMC to spend billions more to build 3nm fab in Arizona

The Wall Street Journal reported that TSMC, the leading manufacturer of the semiconductor industry, is preparing to invest billions of dollars to build a factory in Arizona.

The report quoted people familiar with the matter as saying that within a few months, TSMC will announce the establishment of an advanced semiconductor factory in north Phoenix, Arizona, adjacent to a chip factory that will begin construction in 2020.

The planned investment in the new plant is roughly the same as the US$12 billion two years ago. The new fab is based on the latest 3nm process.

In May 2020, TSMC announced that it would spend $12 billion to build a wafer fab in Arizona.

Ground breaking will begin in June 2021, production will begin in 2024, and a machine transfer ceremony will be held in December.

In addition to the US President Biden’s legendary meeting, TSMC also invited customers, suppliers, academics and government representatives and other guests.

The personnel and equipment components that are going to the United States will also discuss the charter project with China Airlines.

The fab announced in 2020 will be foundry using a 5nm process with a monthly production capacity of 20,000 pieces. Customers include GPU giant Huida, mobile processor giant Qualcomm and Apple, etc.

A few days ago, there was news of the expansion of the Arizona wafer fab, an increase of 10% from 20,000 to 22,000.

Industry analysis shows that TSMC has high expectations for the US factory and requires employees to sprint with all their strength, so the target is 10% higher than the original production capacity.

The reason why TSMC invests heavily in fabs in the United States is to obtain generous subsidies from the US government’s semiconductor bill and to bring advanced semiconductor manufacturing back to the United States.

TSMC has not yet confirmed the Phase 2 Fab

In response to US media reports that TSMC, the leader in foundry, is preparing to invest billions of dollars to build a factory in Arizona, USA,

TSMC responded in the evening and pointed out that so far, TSMC has not yet determined the plan for the second phase of the Arizona wafer fab.

Given the strong customer demand for TSMC’s advanced processes, we will evaluate future plans in terms of operational efficiency and cost economics.

TSMC will announce in a few months an advanced semiconductor plant north of Phoenix, Arizona, next to a wafer fab that will begin construction in 2020, according to people familiar with the matter, according to The Wall Street Journal.

The planned investment in the new plant is roughly the same as the US$12 billion (about NT$385 billion) two years ago. The new fab uses the latest 3nm process.

As for TSMC, the reason why TSMC invests heavily in fabs in the United States is to obtain generous subsidies from the US government’s semiconductor bill and to bring advanced semiconductor manufacturing back to the United States.

TSMC’s latest response to this evening said that the Arizona wafer fab currently under construction by TSMC includes a part of the building that may be used for the second phase of the plant.

Improve cost-effectiveness by utilizing resources that are being constructed concurrently in one phase.

This building allows us to maintain flexibility for future expansion. But so far, TSMC has not confirmed the plan for the second phase of the Arizona fab.

Given the strong customer demand for TSMC’s advanced processes, we will evaluate future plans in terms of operational efficiency and cost economics.

SOURCEbloomberg
Mehmet S. Kaya
Mehmet S. Kayahttps://teknonel.com
Mehmet is one of the administrator of Teknonel. As a software developer, he loves to share his knowledge in related topics. He is highly familiar with the editorial process from the inception of an article idea, through the iterative process, publishing, and performance analysis as well as product reviews.

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