Taiwan Semiconductor Manufacturing Company (TSMC) board has approved a capital injection of up to $3.5 billion in TSMC Arizona, the company said.
In December, the foundry behemoth announced plans to open a second chip factory in Arizona, boosting its investment in the US threefold to $40 billion. This represented “the largest foreign direct investment in Arizona history and one of the largest foreign direct investments in the history of the United States,” the company said.
The capital injection is part of the $40 billion investment announced in December.
“When complete, TSMC Arizona’s two fabs will manufacture over 600,000 wafers per year, with estimated end-product value of more than US$40 billion,” the company announced in its December statement.
TSMC’s global expansion
TSMC’s US investments are part of the chipmaker’s strategic move to expand beyond Taiwan, due to the country’s political tensions with China.
Last month, the company said it is considering opening its first plant in Europe and a second one in Japan. The Europe plant is likely to come up in the German city of Dresden.
According to a tweet by Taiwanese research firm TrendForce, TSMC’s US output is expected to reach 3% of its overall capacity by 2025, up from 1% in 2022. At the same time, the percentage of wafers produced in Taiwan by TSMC will drop from 93% in 2022 to 88% by 2025.
It is worth noting that TSMC’s upcoming 4nm and 3nm fabs in the US, scheduled to commence operations in 2024 and 2026, respectively, won’t showcase the company’s most advanced capabilities.
TSMC is already ramping up 3nm chip production in Taiwan and said it plans to start producing 2nm chips in the country by the end of 2025, before the company’s 3nm plant in the US even goes live.
With its investments in Arizona, TSMC is eyeing the $52 billion in US chip manufacturing subsidies that were passed by Congress a few months ago as part of CHIPS and Science Act.
The…
2023-02-16 07:00:03
Source from www.computerworld.com
Taiwan Semiconductor Manufacturing Co. (TSMC) recently announced plans to invest $3.5 billion in a new manufacturing facility in Arizona. The new factory, TSMC’s mobile-chip making plant, is expected to bring in up to 1,600 jobs with an average salary of $75,000 per year.
The new plant will be located in the city of Phoenix and operated by TSMC subsidiary N5 Technologies. As one of the world’s largest semiconductor manufacturers, TSMC will be using the new facility to strengthen its mobile chip production capabilities.
The Phoenix site is among several locations in the United States that TSMC is currently considering or have considered for chip making facilities. The decision to invest in Arizona follows discussions with local and state governments, universities and department of commerce officials.
The new plant is expected to begin operations in 2021 and is part of TSMC’s global push for advanced technology. The factory will produce semiconductor chips for the consumer electronics, automotive, and healthcare industries as well as for emerging semiconductor applications.
TSMC has emerged as one of the most influential chip producers in the world, and their decision to invest in a new factory in Arizona will be a shot in the arm for the state’s economy. With TSMC’s investment, Arizona will become a major hub for advanced semiconductor production, which will likely spur further investments, job creation and other economic growth.