TSMC Expands U.S. Footprint with Arizona Fab Amid Industry Challenges
Dec/19/2024
Taiwan Semiconductor Manufacturing Company (TSMC) has completed its first Arizona chip fabrication plant, marking the most advanced fab on U.S. soil with Apple as its largest customer. Initially projected as a $12 billion investment, the project has grown to $20 billion, with production delayed until 2025. TSMC plans to build two additional fabs at the site, bringing its U.S. investment to $65 billion by the decade’s end. The Arizona fab, currently in pilot production of 4-nanometer chips priced at $18,000 per wafer, reflects the U.S.’s push to reduce reliance on Asia for advanced semiconductors, as TSMC currently produces 92% of the world’s most advanced chips in Taiwan. Backed by $6.6 billion from the CHIPS Act, the expansion addresses supply chain vulnerabilities but faces challenges, including a shortage of skilled workers, high water and power demands, and competition from Intel, which is also building fabs in Arizona. TSMC plans to hire 6,000 workers, recycle 65% of its water usage, and generate renewable energy credits to offset power consumption. With additional global investments in Japan and Germany, TSMC is strengthening its leadership in semiconductor manufacturing while expanding its U.S. presence to support critical industries and reduce geopolitical risks.
