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Chipmaker TSMC Eyes Expanding Arizona Plant Source

FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan August 31, 2018.REUTERS / Tyrone Siu

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (TSMC) (TSMC.N) is planning to build several more chip factories in the U.S. state of Arizona in addition to what is currently planned, three people familiar with the matter told Reuters.

TSMC, the world’s largest contract chipmaker, announced in May 2020 that it would build a $ 12 billion plant in Arizona, a clear victory from the Trump administration in pushing for a tussle. Global technology supply chains back from China

TSMC is setting up a 12-inch wafer plant in Phoenix and expects it to begin mass production in 2024, the Taiwan Economy Ministry’s Investment Committee, which approved the investment, said in December.

TSMC produces a large number of chips in Taiwan and has older chip factories in China and the US state of Washington.

Three sources familiar with the matter, speaking of the condition of anonymity as they were not authorized to speak to the media, told Reuters that five additional fabs were being planned for Arizona.

The initial fab is relatively simple by industry standards, with a planned output of 20,000 wafers, each containing thousands of chips every month, using the company’s most complex 5nm semiconductor manufacturing technology.

It is not clear how much capacity and additional investments the additional fabs might represent and what chip manufacturing technology they will use.

TSMC last month said it plans to invest $ 100 billion over the next three years to increase production, although details were not provided. Read more about studying in Pakistan

One person with direct knowledge of the matter told Reuters the expansion was at a request from the United States. But declined to give further details.

“The United States requested it, TSMC internals are planning to create six febs,” the person said, adding that the timing could not be determined.

Biden’s management is preparing tens of billions of dollars in funding to support domestic chip production. Under existing law, foreign companies are entitled to those funds. But will they ultimately get it? That’s an open question.

A second person familiar with the plan said the company had verified there was enough space for expansion when they obtained land for the first factory.

“So they were able to make six fabrics,” the source said.

A third party from TSMC suppliers involved in the Arizona project said TSMC had told them it plans to build a total of six plants over the next three years.

Reuters was unable to independently confirm the timing.

TSMC cited CEO CC Wei comments on the earnings call last month, saying the company was beginning 2024 Arizona chip production with 20,000 5nm per month of 5nm technology.

“But in reality, we purchased a large piece of Arizona land to provide flexibility, so further expansion is possible. But we will add it to Phase 1 first and then consider the operational efficiency and cost savings and customer demand. Asked if the planned expansion was due to a request from the United States, TSMC said, “I’m not sure” what the “request” coming from the US side represents and will decide the next step. Based on operational efficiency, cost economics and Customer requirement

“When a formal decision is made, we will disclose it accordingly.”

Our Standard: The Thomson Reuters Trust Principle.

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