Five more TSMC chip plants planned in U.S. expansion
Apple chip partner TSMC is considering expanding its existing plans to open up a chip foundry in Arizona, with the Taiwanese firm apparently planning to open up to a further five more locations in the state.
TSMC has been working to build a $12 billion chip factory in Arizona, one that was originally announced in May 2020 and that the company has been busy raising funds to construct. However, it may not be the only project TSMC is planning to build in the United States.
According to three sources of Reuters, TSMC is looking into potentially adding another five facilities in Arizona alongside the existing project in Phoenix.
One source claims the increase in facilities is a response by the U.S. government request, though didn't go into details. "Internally, TSMC is planning to build up to six fabs," said the source.
In April, TSMC took part in a White House virtual summit alongside other tech executives and chip producers, one that aimed to find ways to ease the global semiconductor shortage. The Biden administration aims to spend tens of billions of dollars to raise the level of domestic chip production, which TSMC may also be eligible to receive.
A second source hinted that the location of the other facilities could be very near to the current project, with TSMC said to have already ensured there was enough land available for expansion.
As for how long it could take for the fabs, the third source said TSMC had advised a supplier the plan was to construct the six facilities over the next three years.
On an April earnings call, TSMC CEO C.C. Wei commented on the facility under construction, which could start production of 5nm chips by 2024, with an output of 20,000 wafers per month.
In the call, it was mentioned that the firm has "acquired a large piece of land in Arizona to provide flexibility." Further expansion is possible, the CEO mentioned, but it would have to "ramp up to Phase 1 first, then based on the operation efficiency and cost economics and also the customers' demand, to decide what the next steps we are going to do."
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TSMC has been working to build a $12 billion chip factory in Arizona, one that was originally announced in May 2020 and that the company has been busy raising funds to construct. However, it may not be the only project TSMC is planning to build in the United States.
According to three sources of Reuters, TSMC is looking into potentially adding another five facilities in Arizona alongside the existing project in Phoenix.
One source claims the increase in facilities is a response by the U.S. government request, though didn't go into details. "Internally, TSMC is planning to build up to six fabs," said the source.
In April, TSMC took part in a White House virtual summit alongside other tech executives and chip producers, one that aimed to find ways to ease the global semiconductor shortage. The Biden administration aims to spend tens of billions of dollars to raise the level of domestic chip production, which TSMC may also be eligible to receive.
A second source hinted that the location of the other facilities could be very near to the current project, with TSMC said to have already ensured there was enough land available for expansion.
As for how long it could take for the fabs, the third source said TSMC had advised a supplier the plan was to construct the six facilities over the next three years.
On an April earnings call, TSMC CEO C.C. Wei commented on the facility under construction, which could start production of 5nm chips by 2024, with an output of 20,000 wafers per month.
In the call, it was mentioned that the firm has "acquired a large piece of land in Arizona to provide flexibility." Further expansion is possible, the CEO mentioned, but it would have to "ramp up to Phase 1 first, then based on the operation efficiency and cost economics and also the customers' demand, to decide what the next steps we are going to do."
Stay on top of all Apple news right from your HomePod. Say, "Hey, Siri, play AppleInsider," and you'll get latest AppleInsider Podcast. Or ask your HomePod mini for "AppleInsider Daily" instead and you'll hear a fast update direct from our news team. And, if you're interested in Apple-centric home automation, say "Hey, Siri, play HomeKit Insider," and you'll be listening to our newest specialized podcast in moments.
Comments
I don't think they need to do that or want to do that. They already are switching chips, which is a big process. I don't know that they want to get into the actual production business.
But secondly, and this is what few seem to be talking about, is China's response to the shortage, current military buildup, and future plans. China is exceptionally patient. They want to eventually re-take Taiwan. Not only do they need to tech now to be able to do it any time in then next decade, but they are keenly interested in TSMC. Imagine what would happen if China concludes that it's worth the risk of a full scale war to launch a surprise attack on Taiwan. There have been recent war games where the U.S. either fails to respond or we get our butts handed to us because of Access Denial Weapons. Imagine if China takes over Taiwan and TSMC. They would control the second biggest chip manufacturer in the world. Good luck fielding our F-35s, AEGIS Radar, and other high tech systems. The security implications are terrifying.
The above is why I think the government is strongly pushing for more domestic production. Politics aside, both parities know the threat this shortage poses when combined with an aggressive and emboldened Communist government.
TSMC isn’t just “a chip fab”, but a sprawling business which provides half the world semiconductors, and seems to be steamrolling the competition. Apple owning TSMC would threaten the supply chain of every other electronics manufacturer in the world. If people are calling Apple a monopoly now, what would they call that monster?
TSMC might cut a deal with ASU or UA to hire EE and CS graduates as technicians—it would be a great move politically. And they are a politically astute organization. A domestic workforce ties them emotionally as well as economically to the US population. They don’t get that with H1-Bs. They need an engaged US to stave off mainland aggression.