Apple’s long-term manufacturing partner, Taiwan Semiconductor Manufacturing Company (TSMC) is planning to expand its manufacturing units in Arizona, U.S. Reuters reports that the new factories are being built at the request of the U.S government.
In April, TSMC announced a huge $100 billion investment over the next three years to increase the production capacity of silicon to power smart devices like mobiles, fridges, automobiles for big clients like Apple, Qualcomm, Nvidia, and others. The manufacturer explained that the reason for the expansion was to bridge the growing gap between slow supply and high demand. And now the manufacture is planning to add up to six more factories, in addition to the already announced investment.
TSMC plans to further expand its manufacturing plants in Arizona to meet supply chain demand
As per the report, the Taiwanese chipmaker is building its manufacturing units in the United States on the government’s incentives. People familiar with the matter told the publisher that “up to five additional fabs for Arizona are being planned.”
The initial fab is relatively modest by industry standards, with a planned output of 20,000 wafers – each of which contains thousands of chips – every month using the company’s most sophisticated 5 nanometre semiconductor manufacturing technology.
Other sources told that TSMC plans to build six new factories at the request of the U.S government.
“The United States requested it. Internally TSMC is planning to build up to six fabs,” the person said, adding that it was not possible to give a timeframe.
The Biden administration is preparing to spend tens of billions of dollars to support domestic chip manufacturing. Under existing legislation, foreign firms are eligible for those funds, but whether they will ultimately receive it is an open question.
The company had already made sure there was enough space for expansion when they obtained the land for the first plant. It’s so they can build six fabs.”
Currently, there is a global chips shortage which is likely to affect across industries. Apple confirmed that its iPad and Mac production will get affected by the ongoing silicon crisis. Therefore, the news of TSMC expansion is favorable for the industry.