The big picture: TSMC's state-of-the-art $65 billion chip factory in Arizona is reportedly churning out some of the most sought-after processors on the market already. Sources indicate that the facility, known as Fab 21, began manufacturing chips for AMD and Apple earlier this year.
Tim Culpan, a well-connected industry insider, has revealed that Fab 21 is already producing at least three major chip designs as part of its initial installed capacity.
Last September, it was confirmed that Apple's A16 Bionic SoC for the iPhone 15 and iPhone 15 Plus would be manufactured at the Arizona facility. According to Culpan's report, the fab is now also producing chips for the next-generation Apple Watch.
While the exact model remains unclear, Culpan says he is "99% sure" it's the S9 processor package. This specialized system-in-package design is expected to integrate the main application processor core alongside silicon dedicated to AI and neural processing tasks.
The biggest surprise from TSMC Arizona is its production of AMD's new Ryzen 9000 series CPUs. Codenamed "Grand Rapids," according to sources, these processors utilize TSMC's cutting-edge 4nm-class N4 and N4P process technologies and form a key part of AMD's latest mainstream lineup. However, the report did not specify which Ryzen 9000 models are currently in production.
With three major product lines now being built at the Arizona facility, TSMC's $65 billion investment appears to be paying off. Culpan reports that the fab is currently operating at a capacity of approximately 10,000 wafer starts per month during its initial phase (Phase 1A). That number is projected to more than double to 24,000 wafer starts as part of Phase 1B, though the expansion is reportedly facing a "bottleneck" due to "tooling delays."
One of the fab's most significant challenges has been staffing and worker retention. While TSMC has prioritized hiring locally – now employing more local workers than foreign transfers – it has still relied heavily on expertise from Taiwan. This week, the company issued an internal call for hundreds of additional experienced workers from its Taiwan headquarters to help fill critical roles in fab operations and equipment installation.
Despite these hurdles, TSMC appears determined to keep its ramp-up schedule on track. In a noteworthy move underscoring the strategic importance of the Arizona facility, the company's board of directors is set to hold a meeting on-site. This rare occurrence will likely include a full tour of the fab, allowing board members to witness the manufacturing process firsthand.
Insiders say TSMC's Arizona fab is now producing AMD Ryzen 9000 CPUs
