TSMC raises Arizona fabs’ budget to $40 billion

TSMC raises Arizona fabs’ budget to $40 billion

Business news |
By Peter Clarke

As foundry Taiwan Semiconductor Manufacturing Co. Ltd. welcomes President Biden to its “tool-in” ceremony in Phoenix, Arizona, the company has announced it will spend US$40 billion on two fabs there.

TSMC had originally announced a US$12 billion budget for TSMC Arizona’s first fab, which is scheduled to begin production of the N4 process (nominal 4nm) in 2024. This is the completed shell where TSMC is receiving the first chip manufacturing tools in the presence of the US President. TSMC has now announced it has started construction of a second fab on the campus scheduled to begin production of TSMC’s 3nm process technology in 2026.

The overall investment for these two fabs will be approximately US$40 billion but TSMC did not reveal over how many years that will be spent.

The campus there could eventually accommodate six wafer fabs (see TSMC planning for six wafer fabs in Arizona).

As the two-fab plan stands it will require 10,000 constructions workers and will create 4,500 direct TSMC jobs. When complete, TSMC Arizona’s two fabs will manufacture over 600,000 wafers per year, with estimated end-product value of more than US$40 billion.

TSMC also revealed it is planning to build an on-site industrial water reclamation plant so that the TSMC Arizona site will achieve near-zero liquid discharge.

“We are thankful for the continual collaboration that has brought us here and are pleased to work with our partners in the United States to serve as a base for semiconductor innovation,” said Mark Liu, chairman of TSMC, in a statement.

Related links and articles:

News articles:

TSMC planning for six wafer fabs in Arizona

TSMC dragged to the altar of US manufacturing

TSMC picks Arizona for 5nm wafer fab

TSMC is planning a US wafer fab . . . again

US talks to Intel, TSMC about building local foundry fabs

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