Geopolitical difficulties are forcing Taiwan Semiconductor Manufacturing Company (TSMC), the world’s biggest contract chipmaker, to scale up the diversification of its assembly plants. As a result, TSMC will more than quadruple its capital in the US state of Arizona to $40 billion. In Arizona, TSMC is now investing $12 billion in the development of a manufacturing facility that was initially intended to produce chips with nominally 5-nanometer nodes
TSMC said that the two stages of the Arizona fab project are projected to produce 10,000 high-paying high-tech employees, in addition to the more than 10,000 construction employees that aided in the building of the factory, including 4,500 jobs directly employed by TSMC. The overall yearly manufacturing capacity will surpass 600,000 wafers when the project’s two stages are finished, and the market value of the finished goods is predicted to reach 40 billion US dollars.
The Arizona fab also intends to construct an industrial recycled water plant in the factory area to adhere to TSMC’s commitment to environmentally friendly production. The fab will eventually reach its aim of almost zero liquid discharge.
According to White House officials and sources close to TSMC, the firm will reveal plans for a second fab that would produce more sophisticated 3nm, or N3 chips starting in 2026 during a ceremony on Tuesday commemorating the installation of the first chip tools at the Phoenix factory. Additionally, TSMC will state that it plans to produce N4 chips, which are a little more sophisticated, in the fab that was initially created for N5 chips.
US President Joe Biden is anticipated to highlight the new investment in a speech at the event as evidence that America can once again dominate in manufacturing and as support for his economic strategy to increase domestic chip production and safeguard supply chains. The increased TSMC presence, however, according to industry analysts, won’t be able to handle cutting-edge items like new iPhone models when the fabs do open.
The investments, they said, could only provide rudimentary supply chain security, serving as a harsh reminder of the enormous dangers involved should China strike Taiwan, where TSMC is located and where the majority of its growth is still being carried out. It will be intriguing to see how the government and its allies pave the way for TSMC in the US.