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3mo ago

TSMC Faces Challenges in U.S. Chip Manufacturing as Arizona Plant Begins Production

Despite high costs and regulatory hurdles, TSMC's Arizona facility has started producing 4nm chips, but Taiwan will remain the hub for its most advanced technologies.

Overview

  • TSMC's Arizona Fab 21 has officially begun high-volume production of 4nm chips, with yields comparable to its facilities in Taiwan.
  • The U.S. facility faces significantly higher costs due to complex regulations, labor shortages, and supply chain challenges, including chemical costs five times higher than in Taiwan.
  • TSMC has invested $35 million to establish 18,000 compliance rules to navigate U.S. regulatory requirements, which have doubled construction timelines compared to Taiwan.
  • The company confirmed that its most advanced chip technologies, such as N3 and N2 nodes, will continue to be developed and ramped up in Taiwan first due to proximity to R&D teams.
  • Products from the Arizona plant, including Apple and AMD chips, are currently shipped back to Taiwan for packaging until a new facility in Peoria, Arizona, is operational.