TSMC plans to build another 12 billion facility in Arizona

TSMC plans to build another $12 billion facility in Arizona to manufacture 3nm chips

The Taiwanese TSMC is preparing to implement another project with investments worth billions – the company wants to expand the completed chip factory in Arizona (USA). In the coming months, the manufacturer plans to announce the construction of a state-of-the-art facility north of Phoenix alongside the facilities already under construction, the construction of which was previously announced in 2020. The investment volume, according to some sources, will be the same as 2 years ago – $12 billion.

    Image source: Maxence Pira/unsplash.com

Image source: Maxence Pira/unsplash.com

The company began to actively develop the production of chips in the United States, followed after Washington promised semiconductor manufacturers all kinds of grants and benefits for building companies on American soil. The future TSMC factory will produce chips according to the 3nm process technology, one of the most advanced today.

TSMC says the official installation ceremony for the first batch of chip fabrication equipment at the first Arizona facility will be held in December – construction was announced to begin two years ago, with production scheduled to start in 2024. If the company used to want to produce 5nm chips in Arizona, now we’re talking more advanced 4nm options. Mass production is scheduled to start in 2024. It is not yet known when the second plant will be commissioned.

The expansion indirectly reflects manufacturers’ optimism about long-term demand for semiconductors, also against the background of the disappointing market development this year. Demand for some chips has collapsed after a two-year boom during the pandemic, which saw demand for computers and electronics surge. Many companies, including TSMC, have had to go into austerity mode and cut short-term capital expenditures.

Despite the downturn in the industry, semiconductor executives still expect global sales to exceed $1 trillion over the next decade, so investments in manufacturing infrastructure will continue to be heavy, especially since such plans have been pushed by the United States and Europe in recent years were actively supported in hopes of shifting the “power center” of the semiconductor industry out of Asia. Intel and Micron are also trying to save money in the near term while investing heavily in future projects in anticipation of strong demand.

This year, the United States distributed $39 billion in chip-making grants, and the funds themselves will be awarded starting next year. In addition, there are also tax incentives for semiconductor manufacturing plants. Europe also intends to double its manufacturing share of the global semiconductor market to 20% by 2030. Large plants are usually built and equipped for several years, so companies have to make investment decisions in advance.

    Image source: Robert Murray/unsplash.com

Image source: Robert Murray/unsplash.com

Huge subsidies in the US and Europe for chip manufacturing reflect the fact that political leaders have recognized their critical importance in the military and civilian spheres. The active development of the related industry in China caused great concern in the West, after which the United States stopped promoting the idea of ​​free market relations and imposed tough sanctions on Chinese companies, including a ban on both the export of advanced chips and equipment for their production to the country .

In addition, the United States and its allies are concerned that the most advanced semiconductor manufacturing technologies are concentrated in Taiwan, an island that China considers part of its territory. It is known that TSMC is considering expanding production in Japan in addition to the USA and is allowing the construction of a multi-billion dollar plant in Singapore.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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