TSMC Confirms 5nm Semiconductor Fab to be Built in America

For the last few weeks, we’ve heard more than a few rumblings that the US government was rather keen to help secure a deal, in so much as it could, to see the construction of a TSMC fabrication plant in America. Largely, we suspect, because America didn’t necessarily want to be overly reliant on the existing plants located in Asia and particularly China.

Well, following a formal announcement from TSMC themselves, it appears that a deal has been struck and constructions will shortly begin on a brand new plant in Arizona!

TSMC To Open American Plant

In a report via Videocardz, TSMC has released the following statement:

“[TSMC] today announced its intention to build and operate an advanced semiconductor fab in the United States with the mutual understanding and commitment to support from the U.S. federal government and the State of Arizona.

This facility, which will be built in Arizona, will utilize TSMC’s 5-nanometer technology for semiconductor wafer fabrication, have a 20,000 semiconductor wafer per month capacity, create over 1,600 high-tech professional jobs directly, and thousands of indirect jobs in the semiconductor ecosystem. Construction is planned to start in 2021 with production targeted to begin in 2024. TSMC’s total spending on this project, including capital expenditure, will be approximately US$12 billion from 2021 to 2029. This U.S. facility not only enables us to better support our customers and partners, it also gives us more opportunities to attract global talents. This project is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that enables leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States and benefit from the proximity of a world-class semiconductor foundry and ecosystem.

TSMC welcomes continued strong partnership with the U.S. administration and the State of Arizona on this project. This project will require significant capital and technology investments from TSMC. The strong investment climate in the United States and its talented workforce make this and future investments in the U.S. attractive to TSMC. U.S. adoption of forward-looking investment policies to enable a globally competitive environment for a leading-edge semiconductor technology operation in the U.S. will be crucial to the success of this project. It will also give us the confidence this and other future investments by TSMC and its supply chain companies will be successful.”

What Do We Think?

It’s understood that the plant will primarily focus on 5nm chipset designs and, based on their plans to open it in 2024, would still see it (comparatively) fall a couple of years behind their Asia based operations. Demand for this chipset, however, is already notably high as AMD, Nvidia, Intel, and Apple already have their technological eyes on this upcoming node platform.

The main crux, however, goes back to our initial point. The opening of this factory will be highly-beneficial to western manufacturers as they (will likely) no longer be overly reliant on the Asian factories and whatever restrictions may be seen in the future. Particularly as America is in a rather aggressive trade stance with China.

What do you think? – Let us know in the comments!