The Wall Street Journal reports that Apple’s chip supplier TSMC intends to construct a second fabrication facility in Arizona in addition to the $12 billion factory it has already committed to building in Phoenix. According to persons familiar with the plans who talked to WSJ, the second plant will be situated north of Phoenix, Investment is anticipated to be equivalent to the $12 billion the business committed to in 2020.
The original plant was supposed just to mass-produce 5nm chips. Still, according to WSJ’s sources, it is preparing to build more sophisticated 4nm devices with a bigger capacity at the facility. In 2024, the factory is anticipated to begin mass production.
The second factory, meanwhile, is anticipated to produce cutting-edge third-generation (3nm) processors, a process to which Apple is reportedly switching, starting with the M2 Pro or M3 chip. It is reported that TSMC’s improved 3nm process will produce both Apple’s M3 processor for Macs and A17 chip for the iPhone 15 Pro models. According to Bloomberg’s Mark Gurman, M2 Pro is anticipated to be utilized in the 14-inch and 16-inch MacBook Pro models and a high-end Mac mini.
The announcement of TSMC’s undisclosed plans follows efforts by the Biden administration to entice investments in American chip manufacturing by promising businesses billions in financial assistance to establish themselves in the nation. The initiatives seek to secure elements deemed essential to national security while thwarting China’s ambitions in the tech sector. The initiatives were stepped up after the chip shortages in late 2020 and early 2021 highlighted the significance of semiconductors in consumer electronics.
The second Arizona facility will be TSMC’s third production location in the United States; the company also has a factory in Camas, Washington, and design centers in Austin, Texas, and San Jose, California. However, the company’s primary factories are in Taiwan. Regional hostilities between China and Taiwan and the US’s decision to support the company’s development are two major factors that led to TSMC’s expansion to the US.