The investment will fund two new factories and 3,000 more jobs
Company also expects modest revenue declines in 1H 2023
Revenue was up, but not as much as analysts expected
Economic downturn finally catches up to TSMC
Another step towards technological self-sufficiency
There is no simple answer, but we think there are a few factors that really stand out...
The big picture: By now, we are all familiar with the fact that TSMC is, by far, the most capable semiconductor manufacturer in the world, with all the entails for the industry and geopolitics. And as this reality sets in, many people have been asking us how did they get so good?
The final (commercial) frontier: A new space infrastructure startup called "ThinkOrbital" wants to boldly go where no manufacturing corporation has gone before --- low-Earth orbit. It aims to construct a space station for manufacturing various commercial products. It says the platform can also recycle space junk.
Automakers have already tried every manufacturing model, and yet...
Forward-looking: Taiwanese giant TSMC has officially confirmed it will build an additional fab for chip manufacturing in the US. The Arizona site will grow, the investment will skyrocket and the number of newly-created jobs will make politicians very, very happy.
The big picture: Taiwan Semiconductor Manufacturing Company's (TSMC) Arizona factory project has become more apparent over the last few weeks. The company intends to move some of the most advanced node processing to the United States, much of it for Apple's iPhones. The company will soon announce an upgrade to its plans.
A hot potato: Like a train leaving the station, it now seems inevitable that US companies are moving to reduce, or entirely eliminate, their reliance on China. It took a long time to get started, companies had been complaining about changing conditions in China for a decade. The 2018 trade war was the spark that really got them moving, and their progress has only been gaining momentum since then. This process will take years, maybe decades, but at this point is probably unstoppable.
The iPhone 14 launch has been far from smooth
In context: Samsung will use its most advanced manufacturing process to make chips for four well-known technology companies. The race to overtake TSMC as the world's largest chip foundry is on, while geopolitical conflicts are tearing the old economic balance apart.
Wafer costs could keep driving component and electronic prices upward
The chip companies are never going to really love this business
The big picture: Earlier this year we were reviewing Analyst Day slides from leading semiconductor companies and a clear theme emerged. Large companies are all shifting in a similar direction, posing some potential challenges for their long-term positions. More and more customers are looking for special purpose chips, a coping mechanism for dealing with the slowdown in Moore's Law. And the big players are all looking to support those customers.
The plant will be operational in 2024
Isolated employees have been climbing the facility's fence to escape
In context: Manufacturing giant Foxconn has responded to a video circulated on Twitter claiming that eight people in a dormitory at its Zhengzhou, China, factory have died due to a Covid-19 outbreak. The facility, its main iPhone production plant in the country, is in the middle of a Covid lockdown, but Foxconn claims nobody has died and the video has been "maliciously edited."
How the mighty have fallen
Every few years new processors with ever-higher demands for energy are launched. Is 250W for a CPU too high? Should any GPU need 450W? Let's peel off the heatsinks to look at the truth behind power numbers.
Less than two weeks after the phone debuted
You might want to upgrade sooner rather than later