TSMC to Boost Planned Chip Production at the Future US Facility

Taiwan Semiconductor Manufacturing Co (TSMC) will boost the planned capacity and produce more advanced chips at a $12 billion facility scheduled to open in the US in 2024. The decision was made as rising trade friction with China and supply chain disruptions spur the company to shift output from Asia, Bloomberg reported.

According to an unnamed source, TSMC will manufacture 4nm chips at the plant in the state of Arizona, an upgrade from the previously-announced 5nm platform, and may boost output from the original commitment of 20,000 wafers a month. With US clients including Apple looking to source more components locally, TSMC also is expected to unveil plans for a 3nm production facility in the same area during a visit by US President Joe Biden and Commerce Secretary Gina Raimondo to Phoenix next week, Bloomberg wrote.

Apple will source about a third of output once production starts at the first TSMC plant in the state. Other US clients pushing TSMC to upgrade include Nvidia and AMD. TSMC announced the US plant in May 2020 as the government pushed for more domestic manufacturing of chips to reduce reliance on imports from China. In May, TSMC held a discussion with Singapore’s Economic Development Board about incentives to set up chip production facilities. It also made moves to expand into Europe and Japan to boost output and diversify manufacturing geographically.