TSMC has finally detailed its “US plans” as the Taiwan giant receives additional funding from the US under the CHIPS Act, catalyzing in-house developments.
TSMC Looks To Establish US As The Next “Taiwan,” The Region To Gain Semiconductor Superiority In a Decade
In a blog by TSMC, the firm revealed that they have signed a PMT deal with the US Department of Commerce, under which TSMC will be granted 6.6 billion dollars under the CHIPS Act. Moreover, the semiconductor giant has revealed plans for a third fab for development in Arizona, the US, as the company is receiving strong interest in its processes, especially for the methods to be developed in US-based fabrication facilities. TSMC says their total capital in Arizona will now equal $65 billion, the highest foreign investment inflows in the state’s history.
The CHIPS and Science Act provides TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States.
Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.
– TSMC Chairman Dr. Mark Liu
Apart from that, the Taiwan giant has also detailed its plans for the processes to be employed in Arizona fabs, with the first one reportedly leveraging 4nm technology in the first half of 2025. Moreover, TSMC plans to introduce its cutting-edge 2nm process by 2028, with the second facility in the region and the 3nm mass production. Finally, for 2nm and above, the firm is also preparing another facility, which is reported to be operational by the end of the decade, somewhere in 2030.
It seems like Taiwan is now well away from the “technology transfer” issue, and now the US will play a critical role in shaping the dynamics of future semiconductor markets. TSMC’s US facilities will be crucial for tech behemoths like AMD and NVIDIA since domestic production wouldn’t only ensure a more reliable stream of supply and be free of factors such as geopolitical tensions, making the fab units much more attractive to potential customers.
TSMC Arizona’s first fab is on track to begin production leveraging 4nm technology in first half of 2025.
The second fab will produce the world’s most advanced 2nm process technology with next-generation nanosheet transistors in addition to the previously announced 3nm technology, with production beginning in 2028. The third fab will produce chips using 2nm or more advanced processes, with production beginning by the end of the decade. Each of the three fabs, like all of TSMC’s advanced fabs, will have cleanroom area approximately double the size of an industry standard logic fab.
TSMC PR
The timeline specified by TSMC is fascinating to witness since it shows that by a decade, the parties plan on a complete production transfer, but the period foretold could be a victim of massive delays, given that political factors like regional disputes and economic issues come into play. Moreover, we have seen Taiwan engineers showing reluctance to work with US fabs in the past, so that’s an issue TSMC would have to address to ensure steady development.