Reuters: TSMC planning five more fabs in Arizona

Posted on Wednesday, May 05 2021 @ 10:41 CEST by Thomas De Maesschalck
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Two months ago, I wrote about a rumor that TSMC may be planning to turn its Arizona campus into a giant factory site with a total of six production facilities. Now this rumor gets more concrete as Reuters heard from three confidential sources that TSMC indeed plans to upgrade its Arizona campus, which is still under construction, to six production units.

Six plants over next three years?

TSMC announced its first Arizona plant one year ago. The initial Phase 1 factory is a $12 billion investment to set up a 300mm wafer fab in Phoenix. This facility is expected to start mass production in 2024. Production will start using the 5nm process and the plant has a planned wafer output of 20,000 wafers.

It's a relatively modest start in Arizona but it appears TSMC's plans are a lot bigger. Internally, the Taiwanese foundry is reportedly considering making its Arizona operations a giant plant with six fabs. One of Reuters' sources claimed TSMC plans to start building all six fabs over the next three years.

According to TSMC, the foundry decides expansion based on operational efficiency, cost economics, and customer demand. The foundry recently announced it would invest a massive $100 billion over the next three years to increase production capacity.

TSMC is the world leader in the semiconductor foundry market. It's the largest player and it offers the most advanced production capacity. At the moment, there is a big shortage of foundry capacity, especially at cutting-edge nodes.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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