Nearly a year ago, it was announced that TSMC was planning to build a $12 billion chip-making plant in Arizona. However, a new Reuters report indicates the first plant is just the beginning.
TSMC’s 12-inch wafer fabrication plant in Phoenix is expected to begin production in 2024, and Reuter’s sources say the chipmaker has additional Arizona plants planned.
The publication cites unnamed sources:
Three sources familiar with the matter, speaking on condition of anonymity as they were not authorised to speak to the media, told Reuters that up to five additional fabs for Arizona are being planned.
The initial fab is relatively modest by industry standards, with a planned output of 20,000 wafers – each of which contains thousands of chips – every month using the company’s most sophisticated 5 nanometre semiconductor manufacturing technology.
It is not clear how much additional production capacity and investment the additional fabs might represent, and which chip manufacturing technology they would use
The move may be a reaction to the incentives offered by the Biden administration’s incentives offered to both domestic and foreign firms that manufacture chips in the US
One person with direct knowledge of the matter told Reuters the expansion was in response to a request from the U.S., but declined to provide further details.
“The United States requested it. Internally TSMC is planning to build up to six fabs,” the person said, adding that it was not possible to give a timeframe.
Intel is also outsourcing some of its chip production to TSMC, which possibly contributed to the chipmaker’s plans.