TSMC 5nm plant in Arizona could reshape global supply chain

A couple of days ago, TSMC announced it will build a $12 billion 5nm plant in the US. While this facility will account for just a fraction of TSMC's yearly output, DigiTimes Research believes it could be a catalyst for a reshaping of the global chipmaking supply chain. The site points out that Arizona is a hotspot of electronics development in the US and that the entry of TSMC as a local, advanced foundry will result in a more complete local ecosystem. TSMC's decision to set up shop in Arizona could also result in some of its partners, like OSAT (Outsourced Semiconductor Assembly and Test) providers, opening a branch in Arizona.

Arizona is where the US has its major electronics industry, aerospace and defense manufacturing operations, as well as an IC industry cluster where Intel, Raytheon, Microchip, ON semiconductor, VLSI, Freescale, NXP, STMicroelectronics, Honeywell, Marvel, Amkor, Philips and Western Digital operate their plants.

With TSMC likely to be involved in the IC industry cluster in Arizona, a bigger and complete local ecosystem could take shape, Digitimes Research believes. For the pure-play foundry itself, ensuring its business model and supply chain ecosystem locally is also a must for its fab project.