US Chip Factory Update. CEO of Taiwan Semiconductor Manufacturing Company confirms that construction of new fab at Arizona site has begun
The head of Taiwan Semiconductor Manufacturing Company (TSMC) has confirmed that construction of a chip factory in Arizona has begun.
Was quoted by TSMC CEO CC Wei taiwan news Speaking Tuesday during the firm’s annual technology symposium. Wei reportedly confirmed that the firm had begun construction at its Arizona site.
It should be remembered that in April TSMC pledged to invest $100m To promote advanced chip manufacturing over the next three years to meet the demand.
The chip shortage is the result of a perfect storm of events, namely increasing demand for electronic devices as people stay home during the coronavirus pandemic, as well as US sanctions against Chinese tech firms, coupled with a severe drought in Taiwan Which is also hindering chip production.
Forrester Research recently warned that it expects cHip supply issues will extend over the next year and into 2023.
Michael Dell, CEO and founder of Dell Technologies, the world’s third-largest personal computer vendor, also recently warned Chip shortage won’t go away soon, and it may take years to resolve.
But TSMC is investing heavily to increase production in the US.
In November 2020 TSMC announced that it would provide a paid-up capital investment of $3.5 billion To establish a wholly owned subsidiary in Arizona.
This came after the firm announced in May 2020 that it would be offering b. was$12 billion factory to be built in Arizona.
The plan at the time was to build the plant in nine years, and construction would begin in 2021.
This was the largest foreign investment by TSMC at that time.
The Taiwanese chipmaker expects the factory to start production in 2024 and make sophisticated 5 nanometer chips, which can be used in high-end defense and communications equipment.
The factory is expected to process up to 20,000 silicon wafers per month. Each wafer can contain thousands of individual chips.
TSMC manufactures most of its chips in Taiwan, and has older chip facilities in China and Washington state.
Reuters TSMC is quoted as confirming that the planned 5-nanometer process is on fab track, with volume production expected to begin sometime in 2024.
The Arizona Fab is being built on 1,129 acres of land purchased in North Phoenix.
Reuters claims that TSMC intends to build six factories at its Arizona campus over the next 10 to 15 years.
Wei also reportedly said that the company’s next 3-nanometer process chips are scheduled to begin volume production by the second half of next year. The chips will be manufactured at its plant located in the Southern Taiwan Science Park in Tainan.
TSMC isn’t the only chip-making firm in Arizona.
Intel also said it would re-enter the contract chipmaking business to make chips for external customers.
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