Today TSMC announced its intention to build and operate an advanced semiconductor fab in the United States with the mutual understanding and commitment to support from the U.S. federal government and the State of Arizona.
This facility, which will be built in Arizona, will utilize TSMC’s 5-nanometer technology for semiconductor wafer fabrication, have a 20,000 semiconductor wafer per month capacity, create over 1,600 high-tech professional jobs directly, and thousands of indirect jobs in the semiconductor ecosystem. Construction is planned to start in 2021 with production targeted to begin in 2024. TSMC’s total spending on this project, including capital expenditure, will be approximately US$12 billion from 2021 to 2029. This U.S. facility not only enables us to better support our customers and partners, it also gives us more opportunities to attract global talents. This project is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that enables leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States and benefit from the proximity of a world-class semiconductor foundry and ecosystem.
TSMC welcomes continued strong partnership with the U.S. administration and the State of Arizona on this project. This project will require significant capital and technology investments from TSMC. The strong investment climate in the United States, and its talented workforce make this and future investments in the U.S. attractive to TSMC. U.S. adoption of forward-looking investment policies to enable a globally competitive environment for a leading edge semiconductor technology operation in the U.S. will be crucial to the success of this project. It will also give us the confidence this and other future investments by TSMC and its supply chain companies will be successful.
AMD, nVidia and Apple are some of TSMC’s largest customers so it makes sense to setup a factory where their major customers are located. Huawei is also a very large customer and TSMC has one fab in mainland China already. TSMC has been cautious with expansion around the world. There are several existing fabs in the US. TSMC is simply expanding their operation. The move to 5nm will pressure competitors to modernize.
SAMSUNG ALSO LOOKING FOR EXPANSION
Samsung has also been negotiating with Arizona, Texas and even New York towards building a new foundry. The expansion news lately clearly has been attracting a lot of media attention in light of chronic shortages of logic.