TSMC to build $12 billion, 5nm plant in Arizona

[midian182]

What just happened? The Taiwan Semiconductor Manufacturing Company (TSMC) has officially confirmed it would build a new chip factory in the US. The $12 billion plant is being constructed in Arizona, with work set to begin next year and the first chips expected to arrive in 2024.

This week brought reports that TSMC was planning to build a factory in the US. Today, the company confirmed it. The manufacturer said the plant would utilize its 5nm technology, have a 20,000 semiconductor wafer per month capacity, and create over 1,600 high-tech professional jobs.

The news has been welcomed by the US government, which has long been requesting TSMC move some of its semiconductor operations from Asia to the US to avoid security issues. In addition to producing chips for the likes of Apple, Qualcomm, and Nvidia, it also makes them for the US military, including those used in F-35 fighter jets.

Last year, Chinese President Xi Jinping said Beijing would not rule out using force to unite China and Taiwan. With the possibility of China taking control of the island, the US doesn’t want its chips within reach of its military and tech rival. As such, the US government wants the firm to make the components in America.

TSMC had said making chips in the US was not the answer to its security worries, but the company later softened its stance, saying in January that it never ruled building or acquiring another fab in America— it already operates a smaller factory in Washington.

The U.S. welcomes TSMC’s intention to invest $12B in the most advanced 5-nanometer semiconductor fabrication foundry in the world. This deal bolsters U.S. national security at a time when China is trying to dominate cutting-edge tech and control critical industries.

— Secretary Pompeo (@SecPompeo) May 15, 2020

The company said it "welcomes continued strong partnership" with the US government and state of Arizona, and Secretary of State Mike Pompeo tweeted his approval.

TSMC has already started producing 5nm chips at its Taiwan plant. It’s expected that the A14 SoC in this year’s iPhone 12 will be based on the technology, as will the rumored A14X chip in a future iPad Pro model, and AMD's Zen 4 chips—though all these will have arrived long before the factory is operational. We’ve also heard that Nvidia is planning a mystery 5nm product, likely based on it post-Ampere Hopper architecture.

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https://www.techspot.com/news/85241-tsmc-build-12-billion-5nm-plant-arizona.html

 

[EClyde]

China is our friend...as long as they pay you

 

[psycros]

China is our friend...as long as they pay you

Huh?

 

[Lounds]

Does anyone find it mental that components are sent all over the world, surely the most efficient way of making things is to have plants in the different continents throughout the world.

 

[EClyde]

Huh?

Does require thought but this is a tech site

 

[Vulcanproject]

Does anyone find it mental that components are sent all over the world, surely the most efficient way of making things is to have plants in the different continents throughout the world.

Supply chain efficiency isn't always the most cost efficient way. So many other factors. Depends a lot on your industry. You're not assembling toasters here.

If someone is willing to give you strong tax breaks, in an area where you have a quality educated workforce it'll always be attractive. Throw in stability of the country, excellent transport links and logistics and you're golden.

You could build extremely cheaply in a country with a fickle government, somewhere the back of beyond, surrounded by rice farmer labor. It wouldn't work for something like a cutting edge semi conductor manufacturer.

 

[Lew Zealand]

Does anyone find it mental that components are sent all over the world, surely the most efficient way of making things is to have plants in the different continents throughout the world.

Labor cost >> Transportation cost

 

[OptimumSlinky]

China is our friend...as long as they pay you

... Taiwan (R.O.C.) isn't a part of the People's Republic of China.

If you're going to make dumb political comments on a tech news site, at least try to direct them towards the correct country.

 

[EClyde]

... Taiwan (R.O.C.) isn't a part of the People's Republic of China.

If you're going to make dumb political comments on a tech news site, at least try to direct them towards the correct country.

If you not read article how you know?

 

[GeforcerFX]

Does anyone find it mental that components are sent all over the world, surely the most efficient way of making things is to have plants in the different continents throughout the world.

labor cost is the largest driver typically, if you can get a European or American high school educated level employee for 1/8 the cost elsewhere you save more than you lose shipping components around the world.

 

[p51d007]

Huh?

Not sure...but maybe he thinks that Taiwan is still part of China???

 

[treetops]

Does anyone find it mental that components are sent all over the world, surely the most efficient way of making things is to have plants in the different continents throughout the world.

Basically we pay them pennies. The world economy has been tilted in our favor since ww2. Having the worlds most powerful military kinda helps. You could call them modern slaves and you are part of the triangle of trade.

 

[ferrellsl]

Basically we pay them pennies. The world economy has been tilted in our favor since ww2. Having the worlds most powerful military kinda helps. You could call them modern slaves and you are part of the triangle of trade.

So you're implying that we bully the Republic of Taiwan into selling us their products at ridiculously low prices?

 

[Danny101]

Good. Important supply chain.

 

[Dimitrios]

But but but Obama said Trump needs a "magic wand" to bring jobs back.