TSMC To Invest Additional $100 Billion In Arizona (apnews.com) 45
TSMC said it will invest another $100 billion in Arizona after reporting a record 77.4% year-over-year jump in second-quarter profit. The expansion would bring its total U.S. investment to $265 billion and include new fabs for 2-nanometer production and advanced packaging to serve major U.S. customers. The Associated Press reports: As AI-related demand continues to jump and needs for computing power from data centers surge, TSMC has been expanding chip fabrication plants in the U.S., Japan and Taiwan. It said it is increasing its annual capital expenditure budget for this year to $60 billion-$64 billion, up from an earlier estimate of $52 billion-$56 billion.
TSMC, or Taiwan Semiconductor Manufacturing Co., is a key supplier to Nvidia and Apple. It had previously already committed $165 billion in the U.S. for building plants in Arizona, with six fabrication facilities planned. The extra $100 billion in investments are to "support the strong multiyear demand from our leading U.S. customers," C.C. Wei, chairman and CEO of TSMC, said during the company's quarterly earnings conference Thursday. An additional four fabrication plants in Arizona will likely be built with the new investments, TSMC said. They will focus on making some of the most advanced chips that are 2-nanometer and below.
TSMC, or Taiwan Semiconductor Manufacturing Co., is a key supplier to Nvidia and Apple. It had previously already committed $165 billion in the U.S. for building plants in Arizona, with six fabrication facilities planned. The extra $100 billion in investments are to "support the strong multiyear demand from our leading U.S. customers," C.C. Wei, chairman and CEO of TSMC, said during the company's quarterly earnings conference Thursday. An additional four fabrication plants in Arizona will likely be built with the new investments, TSMC said. They will focus on making some of the most advanced chips that are 2-nanometer and below.
Need to start making 20 Angstrom chips (Score:3)
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Isn't Intel already doing 18 Angstrom?
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But what about transistor size? (Score:2)
I'm tired of hearing about how close together they are putting transistors because the size of the transistors themselves is now several magnitudes greater than the gaps between them. When are they are going to start telling us they are making smaller transistors?
Re: But what about transistor size? (Score:3)
There is a physical limit to the size of the lithograpy used, the smaller the wavelength the smaller you can make things, that's why they're starting to use ultraviolet, which comes with its own problems.
Making 3D chips is the obvious way to go and they're on track there.
Physics is what it is
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The 386 chip was a miracle of small transistor technology when it came out. Nothing compared to today's simplest CPUs. The miniaturization of technology is fascinating. I wonder how small they'll eventually go?
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The historical reason for shrinking transistors was cost and yield (almost the same thing). By having higher transistor density, you get more chips per wafer geometrically, and you also get more yielding chips per wafer because every killer particle only kills 1 chip, so more chips per wafer translates into higher yield even with the same number of killer particles on the wafer.
There are other benefits to advanced process technology, like lower power con
Capitalism or Dictatorship? (Score:2, Interesting)
Just wondering if TSMC is doing this because they think it makes financial sense (capitalism) or because a certain republican made an offer they can't refuse? (dictatorship)
Re: Capitalism or Dictatorship? (Score:5, Insightful)
Many of their customers are in the US anyway. It makes sense to build there if that's what your customers want. Of course politics plays a role too!
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Many of their customers are in the US anyway. It makes sense to build there if that's what your customers want. Of course politics plays a role too!
It's not just the chips but also the packaging and supply chain. Making chips in Arizona that have to be sent back to Taiwan for packaging is costly. What the customers want is a reliably, steady supply at a reasonable cost. Whether that comes from Taiwan or Arizona doesn't really matter.
Trump is pushing for the US fabs, but TSMC might also be mitigating future risk in case of the theoretical Chinese invasion. There's another angle that Trump likely would hate. The Arizona plants allow TSMC to legitima
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Many of their customers are in the US anyway. It makes sense to build there if that's what your customers want. Of course politics plays a role too!
It's not just the chips but also the packaging and supply chain. Making chips in Arizona that have to be sent back to Taiwan for packaging is costly.
The existing TSMC plant is at an early stage of a long term plan. That overseas packaging is likely temporary.
There's another angle that Trump likely would hate. The Arizona plants allow TSMC to legitimately send a bunch of Taiwanese to the US on L visas.
Really? He frequently comments on being in favor of legal immigration and legal guest workers, especially those of a highly skilled nature.
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You'd think except how'd that work out for the guest workers at Hyundai in AL? No unless they are white, Trump really doesn't want you in the US.
Nope. Your own citation shows you are mistaken. That those detained did not have work visas or they had short term work visas that had expired. Again, I referred to "legal immigration and legal guest workers”.
Re: Capitalism or Dictatorship? (Score:4, Interesting)
Arizona only performs middle-of-line wafer processing. It's a tiny slice of the value chain. Almost the entire semiconductor production chain is in Asia still, which is why the TSMC Arizona fabs have no technological or economic point to exist. Their only possible point is geopolitical or strategic.
All the actual wafers (substrates) are made elsewhere and shipped into America. Along with most of the equipment, a lot of the labor, and many of the chemicals (sulfuric acid in particular is still being shipped to the US from Taiwan because there is no suitable US supply). Then, after shipping all that shit into the middle of the desert Southwest, they perform wafer processing in Arizona, and the complete wafers are shipped back overseas again and sawed up, tested, and packaged, potentially assembled onto PCBs, all overseas.
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They don't even make chips in Arizona actually.
Arizona only performs middle-of-line wafer processing. It's a tiny slice of the value chain. Almost the entire semiconductor production chain is in Asia still, which is why the TSMC Arizona fabs have no technological or economic point to exist. Their only possible point is geopolitical or strategic.
Much of the value chain is in Asia, particularly Taiwan. However, the Arizona fabs will do EUV photolithography and wafer production and testing. That's not a "tiny slice" of the value chain. Characterizing it as middle-of-the-line processing is a gross understatement. It's a huge deal. It's the part that the US is trying furiously to prevent the Chinese from doing. Furthermore, CoWoS/etc. packaging is planned to be online in Arizona by 2028/2029 by both TSMC and Amkor.
Re: Capitalism or Dictatorship? (Score:2)
National security, happens with every admin (Score:2)
Just wondering if TSMC is doing this because they think it makes financial sense (capitalism) or because a certain republican made an offer they can't refuse? (dictatorship)
Domestic manufacture can be required for use in Department of Defense related projects, national security, secure supply chain in the event of war, etc. Its like having a foreign company open a factory in the US to be eligible for a contract. Happens under all administrations.
During covid this idea was extended to medical stuff too, like the protective equipment that was no longer made domestically at the time. I guess public health stuff could fall under national security too.
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It's not just capitalism at play. There's also nationalism.
China may invade Taiwan eventually. TSMC would be irresponsible not to hedge against that.
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I'll believe it when I see it (Score:2)
TSMC is already making chips in the USA (Score:4, Informative)
"TSMC’s massive $65 billion Phoenix, Arizona, project is rapidly expanding into a "gigafab" cluster. The first fab has been in production since late 2024 using 4nm process technology. Construction on the second fab is complete, with equipment installation underway ahead of an accelerated 2027 production target for 3nm chips.
Fab 1: High-volume production of 4-nanometer (N4) chips is actively supplying major U.S. customers like Apple and NVIDIA.
Fab 2: The physical building structure is complete. Equipment installation is slated for 2026, with high-volume production of 3-nanometer (N3) chips targeted for the second half of 2027.
Fab 3: Groundbreaking and structural topping ceremonies are complete, with this facility slated to utilize even more advanced 2nm and A16 process technologies.
Future Expansion: TSMC has acquired additional land and laid the groundwork for up to six fabs plus research and development facilities"
Reality check (Score:2)
On the topic, this is worth reading:
TSMC's $265B US fab pledge is the outline of a concept of a plan
Beware of fab makers bearing press releases
https://www.theregister.com/sy... [theregister.com]
"Considering it takes four to five years to build and ramp production at a new fab site, that $200 billion in promises could take decades, assuming a global economic recession — triggered by a certain bubble bursting, perhaps — doesn’t derail those plans."
Reality check - making chips for Apple and NVidia (Score:2)
TSMC's $265B US fab pledge is the outline of a concept of a plan
According to Google they are already "actively supplying major U.S. customers like Apple and NVIDIA" from the Arizona plant.
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Yep, that article was right on point. This is just hot air because el Bunko runs on hot air. He's even now handicapping a projected loss in the midterms by blaming China for past "influence" conveniently forgetting (1) Russia and his favorite squeeze, Putin, was much more blatant, and (2) doing everything he can to weaken voting protections, and (3) doing everything he can to prevent people in blue states from voting and depressing blue voting in red states. He's gotten plenty of help from the Nazis on the
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Was anything he said factually inaccurate?
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And also, yes, the entire scrawl was just the venting of hyper-emotional partisan rage. All opinion, zero fact.
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Every bit of it was irrelevant, offtopic, and full of htberbole / flat out lies.
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So you can't identify a single thing. Typical.
That's an awful lot of Iced Tea (Score:2)
But I guess they need it to keep their chips cool.
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Forgive me, I'm still a bit drowsy.
Where TF are they getting the water for these fabs (Score:2)
But hey! Arizona is a growing state! Look at all the semiconductor manufacturing we have going on! Yay us! Let's build some more golf courses and resorts while we're at it.
Where are these made in USA tsmc chips? (Score:2)
will likely be built
Oh.
They won't build a dann thing (Score:2)
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You are really looking like an idiot on this one. Might wanna take a look.