May 6, 2021

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Chipmaker TSMC will build ‘up to five’ more factories in Arizona • The Register

TSMC is said to be considering building up to five additional chip plants in Arizona as well as announced last year.

Under the previous president, the U.S. government won over the Taiwanese chipmaker to open another semiconductor fabrication plant on U.S. soil – the biz has subsidiary in the state of Washington turning 350 to 160nm components. In May 2020, TSMC said it will build a factory in Phoenix, Arizona, by 2024 capable of producing 20,000 5nm chip wafers monthly.

Now the manufacturing giant plans to open up to five more in Arizona, according to to Reuters, heard from unnamed sources. CEO CC Wei indicates that his corporation is increasing its collection of production plants to boost chip output while a call to income in mid -April.

“We got land and started building new facilities,” he said [PDF]. “TSMC expects to invest about $ 100bn over the next three years to increase capacity to support the manufacturing and R&D of leading specialty technologies.”

The biz also expects to start making the risk of 4nm and 3nm chips this year, and achieve volume output in the second half of next year. The register asked TSMC for comment on today’s report.

Enthusiasm to build facilities in Grand Canyon State came amid major global component shortages after supply chains were bent during the COVID-19 pandemic and amid rising geopolitical tensions in China.

Chip thirst is a result of a perfect storm: an increasing demand for PCs, graphics cards, game consoles, phones, and servers while people stay or work at home and need remote service, home entertainment, and better kits; manufacturers in the world of automotive and other industries reducing orders in anticipation of an economic slowdown and then running out of supplies as things get back on track; vendors save parts amid Trump’s supply crackdown on China; The outbreaks of COVID-19 and the Texas super-freeze temporary cessation of fabrication lines, and so on. In other words, factory capacity cannot keep pace with global demand for a great number of reasons.

President Biden just signed a command of superior to identify and resolve choke points in supply chains, and backed a charge to spend $ 50bn on chip R&D and manufacturing in America.

US chipmakers Also asked for tax subsidies and increased financial support to expand their home turf to stay competitive with chips developing countries for AI and 5G technologies.

Intel CEO Pat Gelsinger also announced this week his mega-corp is investing $ 3.5bn to build a 3D semiconductor packaging lab in New Mexico. “Intel’s $ 3.5 billion investment in New Mexico will create 700 new jobs over the next three years and establish the Rio Rancho campus as the company’s domestic hub for advanced semiconductor manufacturing,” New Mexico Governor Michelle Lujan Grisham said in a canned statement. ®