Apple’s long-term chip manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC) has begun construction of its new computer chip factory in Arizona, U.S. The manufacturer’s chief executive confirmed the groundbreaking of the new $12 billion processor production unit at TSMC’s annual technology presentation.
As per Reuters report, “CEO C.C. Wei said the planned factory remains on track to start volume production of chips using the company’s 5-nanometer production technology starting in 2024.”
TSMC begins construction of $12 billion chip manufacturing unit in Arizona
In April, TSMC announced a $100 billion investment over three years period to expand its chips manufacturing capacity, especially for Apple. However, Bloomberg questioned the manufactures financial status to support such an ambitious plan.
It’s unclear how TSMC — with $28 billion of cash and equivalents on its balance sheet at the end of December — intends to finance that record outlay, which underscores the enormous capital required to stay at the forefront of the industry. Relied on by everyone from Apple Inc. and Qualcomm Inc. to Nvidia Corp. and Advanced Micro Devices Inc., TSMC is the world’s go-to semiconductor foundry, or producer of chips designed by others. The silicon it churns out goes into practically every modern piece of electronics, from smartphones and smart fridges to connected cars.
Reuters answer’s that query by explaining that the Taiwanese company is banking on $54 billion subsidies to chip manufacturers to develop the domestic industry. In April, President Joe Biden’s administration hosted a summit with key manufacturers to discuss the current global chip shortage and its impact. Another agenda of the summit was to “discuss Biden’s American Jobs Plan and how to strengthen the U.S. supply chain for semiconductors, according to the White House.”
TSMC is expected to be one of several companies, including Intel Corp and Samsung Electronics Co Ltd , competing for some of the $54 billion in subsides for the chip industry that advanced in the United States Senate last week. – Reuters
This claim is corroborated by the publisher’s previous report which stated that TSMC will build up to 6 new factories in Arizona to “bridge the growing gap between slow supply and high demand.” The decision was taken at the request of the U.S government to support domestic chip manufacturing.
Currently, the TMSC is the only foundry in the world that builds chips on a 5nm process and has allegedly begun production of A15 chip for iPhone 13 on 5nm+process. The manufacture is also expected to start production of chipsets on a 3nm process. CEO C.C. Wei said that:
The company has developed a version of its 5-nanometer chipmaking process certified for use by automakers for advanced applications like artificial intelligence, though the new offering is unlikely to alleviate the current chip shortages because the shortages are of less advanced chips.
He said TSMC’s next generation of 3-nanometer chipmaking technology remains on track to start volume production at the company’s “Fab 18” factory in Tainan, Taiwan, in the second half of next year.