TSMC's First U. S. Chip Plant: Ahead of the Game

In a surprising turn of events, Taiwan Semiconductor Manufacturing Company's (TSMC) first U. S. chip plant in Phoenix, Arizona, is showing more promise than its plants back home. The plant's production yields are about four percentage points higher than those in Taiwan. This good news for TSMC could help offset the massive cost of setting up shop in the U. S. The company has faced some delays due to a shortage of skilled workers, but it's pushing ahead with plans to open two more plants by 2025 and 2028.

The Biden administration has stepped in to support TSMC's U. S. expansion, offering up to $6. 6 billion in grants and $5 billion in loans. This funding will help build a third facility at the U. S. hub. TSMC started production at the Arizona plant in April with advanced 4-nanometer process technology. The results are looking great, with high yields and happy customers. Apple is one of the first customers to benefit from TSMC's U. S. plant. The company is already producing A16 chips for Apple's iPhone 14 Pro. Production is expected to ramp up significantly once the second stage of TSMC's Phase 1 fab is complete. This puts TSMC's U. S. site on track to meet its targets in the first half of next year.

Actions