Taiwan Semiconductor Manufacturing Company (TSMC) is one of the world’s top suppliers of chips used in almost all electronic appliances ranging from smartphones to electric vehicles and most of its production is still based in Taiwan.
Taiwan Semiconductor Manufacturing Company (TSMC) plans to make advanced nanometer chips when its $12 billion unit in Arizona commences functioning in the year 2024. Taiwan Semiconductor Manufacturing Company is expected to announce the new plans when the Commerce Secretary and President of America visit Phoenix in the advancing week, reports Bloomberg. TSMC in an official statement in 2020, announced its intention to operate an advanced semiconductor facility in the United States.
The facility in Arizona will utilize TSMC’s 5-nanometer technology for semiconductors, a technology that will be far from the avant-garde by 2024. Taiwan Semiconductor Manufacturing Company is one of the world’s top suppliers of chips used in almost all electronic appliances ranging from smartphones to electric vehicles and most of its production is still based in Taiwan.
The company also plans to add another facility close by, aiming to produce much more sophisticated 3-nanometer chips. Major tech companies including Apple rely on TSMC for their chip-making requirements and the present plans of the company will help the tech giants to get their processors from the US. According to Bloomberg reports, Apple CEO Tim Cook had previously mentioned that the company had plans to secure the chips from the Arizona plant.
Taiwan Semiconductor Manufacturing Company previously in its official statement released have mentioned that the facility would have 20,000 per month wafer capacity per month and will create over 1500 direct job openings. These figures are expected to increase, and Apple will use about a third of the output from the facility once production begins.
Apple’s decision to procure the majority of chips from the Arizona facility would be a huge step for the company in reducing its dependence on Asian markets. The tech giant also informed recently that the company might expand its supply of chips from facilities in Europe.
Along with TSMC, Intel Corp. is constructing its facilities in Arizona and aims to open in the year 2024. The US state governments are also introducing billions in incentives to encourage semiconductor manufacturing to expand in the country. Apple presently receives its device processors from TSMC Taiwan with an outsized share of production and around 60% of the world’s processor supply comes from Taiwan.
Most of Apple’s products are handled in China and other Asian countries. The chances of China taking over Taiwan created problems for companies relying on the country to obtain the processors.
Trade Tensions and supply chain disruptions in China have spurred more efforts to increase manufacturing in Europe and US. Similar to the US, Europe has also been providing incentives to boost chip production. US authorities have also passed the Chip and Science Act this year providing $50 billion in incentives for companies seeking to establish semiconductor industries in the country.
Apple and other Tech Giants like Advanced Micro Devices Inc. and Nvidia Corp. have reportedly asked TSMC to manufacture more advanced chips at the Arizona plant, reports Bloomberg. The Taiwanese company’s customers have asked the firm to roll out the firm’s most advanced technologies in Taiwan and United States.