Home / News / Chipmaker TSMC may be planning to build more chip factories in Arizona

Chipmaker TSMC may be planning to build more chip factories in Arizona

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(Reuters) — Taiwan Semiconductor Production Co (TSMC) is making plans to construct a number of extra chipmaking factories within the U.S. state of Arizona past the only recently deliberate, 3 folks conversant in the topic advised Reuters.

TSMC, the sector’s greatest contract chipmaker, introduced in Might 2020 it might construct a $12 billion manufacturing unit in Arizona, an obvious win through the Trump management in its push to combat world tech provide chains again from China.

TSMC is putting in place a 12-inch wafer fabrication plant in Phoenix, and the power is anticipated to begin quantity manufacturing in 2024, Taiwan’s funding fee of the ministry of financial affairs, which authorized the funding, stated in December.

TSMC manufactures the majority of its chips in Taiwan and has older chip amenities in China and the U.S. state of Washington.

3 assets conversant in the topic, talking on situation of anonymity as they weren’t accredited to talk to the media, advised Reuters that as much as 5 further fabs for Arizona are being deliberate.

The preliminary fab is quite modest through business requirements, with a deliberate output of 20,000 wafers — each and every of which comprises 1000’s of chips — each month the usage of the corporate’s maximum refined Five nanometre semiconductor production era.

It isn’t transparent how a lot further manufacturing capability and funding the extra fabs would possibly constitute, and which chip production era they’d use.

TSMC closing month stated it deliberate to take a position $100 billion over the following 3 years to extend manufacturing capability, although it didn’t give main points.

One individual with direct wisdom of the topic advised Reuters the growth used to be in accordance with a request from the U.S., however declined to offer additional main points.

“The US asked it. Internally TSMC is making plans to construct as much as six fabs,” the individual stated, including that it used to be no longer imaginable to offer a time-frame.

The Biden management is making ready to spend tens of billions of greenbacks to give a boost to home chip production. Below current law, international companies are eligible for the ones price range, however whether or not they’re going to in the end obtain it’s an open query.

A 2d individual conversant in the plans stated the corporate had already made positive there used to be sufficient room for growth once they bought the land for the primary plant.

“It’s so they may be able to construct six fabs,” the supply stated.

The 3rd individual, from a TSMC provider concerned within the Arizona venture, stated TSMC had advised them the plan used to be to construct a complete of six fabs over the following 3 years.

Reuters used to be no longer in a position to independently ascertain the time frame.

TSMC referred to feedback through CEO C.C. Wei on an income name closing month, pronouncing the corporate used to be beginning chip manufacturing in Arizona in 2024 with a 20,000 wafer per thirty days Five-nanometer era.

“However actually, we’ve received a big piece of land in Arizona to offer flexibility. So additional growth is imaginable, however we can ramp as much as Section 1 first, then in response to the operation potency and value economics and in addition the purchasers’ call for, to make a decision what the following steps we’re going to do.” Requested whether or not the deliberate growth used to be as a result of a request from the USA, TSMC stated it used to be “no longer positive” what used to be intended through “requests” coming from the U.S. aspect and that it is going to make a decision subsequent steps in response to operational potency, price economics and buyer call for.

“As soon as there’s any legitimate resolution, we can divulge it accordingly.”

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