Tuesday, May 19th 2020

TSMC 5 nm Fab in Arizona will Change Global Semiconductor Supply Chain: Report

TSMC has just recently announced that they will be building a semiconductor factory in the US, thanks to the pressure from Trump administration. The 5 nm Fab will be built in Arizona, with construction starting in 2021. It will be finished in the year 2024 when the plant will operate at a capacity of 20,000 wafers per month. This is not a high number as TSMC Fabs usually operate at a rate of 100-150K wafers per month, however, the amazing thing is the location of the Fab. The US Fab in Arizona is set to change the global landscape of the semiconductor supply chain, as per the latest report from DigiTimes Research.

Arizona is a place in the US where lots of companies are building semiconductors. Intel, Raytheon, Microchip, ON Semiconductor, VLSI, Freescale, NXP, STMicroelectronics, Honeywell, Marvel, Amkor, Philips, and Western Digital have their facilities there and Arizona can be considered one of the key places for semiconductor manufacturing in the US. With TSMC adding their manufacturing facilities to that list as well, there could be a change in the supplier ecosystem. In light of the need for TSMC 5 nm Fab, the world's leading OSAT (Outsourced Semiconductor Assembly and Test) suppliers may be encouraged to set up local production in Arizona to help TSMC with its plans. A lot of OSAT providers are headquartered in Taiwan, however, if there is a need, they are possibly going to build their manufacturing facilities in Arizona. This alone could change the way semiconductor manufacturing facilities are supplied, and the US could become a major center of OSAT providers.
TSMC HQ
Source: DigiTimes via Underfox (@Underfox3 on Twitter)
Add your own comment

18 Comments on TSMC 5 nm Fab in Arizona will Change Global Semiconductor Supply Chain: Report

#1
Caring1
This has nothing to do with pressure from Trump, it's smart business sense to expand and have a safe base of operations.
Posted on Reply
#2
the54thvoid
Super Intoxicated Moderator
AleksandarKthe US could start controlling the world's semiconductor supply chain.
I don't think that's appropriate use of the term 'control'. It implies the US Govt. would control the flow - which, in a capitalist, free society is a hideous concept.
Posted on Reply
#3
AleksandarK
News Editor
the54thvoidI don't think that's appropriate use of the term 'control'. It implies the US Govt. would control the flow - which, in a capitalist, free society is a hideous concept.
Please read this.
Posted on Reply
#4
the54thvoid
Super Intoxicated Moderator
AleksandarKPlease read this.
Not looking to argue but that link isn't relevant to the notion of a state controlling the supply of a product. TSMC manufacturing in Arizona helps with logistics and interfacing with companies reliant on TSMC products but it's not about control. As for 5G, doesn't change the state of affairs. US based companies and TSMC (in Taiwan) were already trading back and forth. Again, it's about the idea stated in the post that US could start controlling the world semi-conductor supply chain.
Posted on Reply
#5
AleksandarK
News Editor
the54thvoidNot looking to argue but that link isn't relevant to the notion of a state controlling the supply of a product. TSMC manufacturing in Arizona helps with logistics and interfacing with companies reliant on TSMC products but it's not about control. As for 5G, doesn't change the state of affairs. US based companies and TSMC (in Taiwan) were already trading back and forth. Again, it's about the idea stated in the post that US could start controlling the world semi-conductor supply chain.
You are right. I updated the article. Thanks for pointing it out.
Posted on Reply
#6
mtcn77
the54thvoidI don't think that's appropriate use of the term 'control'. It implies the US Govt. would control the flow - which, in a capitalist, free society is a hideous concept.
Expecting market forces to play out in your favour without any attention to determinism is gambling.
Posted on Reply
#7
the54thvoid
Super Intoxicated Moderator
mtcn77Expecting market forces to play out in your favour without any attention to determinism is gambling.
Yeah. And capitalism uses stocks ands share which are reliant on investment which is a form of gambling. The only business that is not a gamble is one which is state owned and covered by government control and endless financial backing.
Posted on Reply
#8
Assimilator
the54thvoidI don't think that's appropriate use of the term 'control'. It implies the US Govt. would control the flow - which, in a capitalist, free society is a hideous concept.
Bullying companies into building their manufacturing facilities where you want them to be built sure sounds like control to me.

In much the same way that China hasn't been communist in the pure sense of the term for decades now, neither has the USA been capitalist.
Posted on Reply
#9
mtcn77
the54thvoidYeah. And capitalism uses stocks ands share which are reliant on investment which is a form of gambling. The only business that is not a gamble is one which is state owned and covered by government control and endless financial backing.
I would like to point out, if "reliant on investment" is correctly understood then market guidance versus market reliance isn't so bad.
Total=size×unit.
You either respect your assessment to your own value by preserving your unit measure, or be liquidated.
You need to establish your base unit measure as your currency, so that that it will not devolve, or be overleveraged.
I would like to share your romanticism, however US dollar value is established on its commodities. If you let markets loose, you will be shortchanged.
Posted on Reply
#10
Vya Domus
Caring1This has nothing to do with pressure from Trump, it's smart business sense to expand and have a safe base of operations.
It's more about the "safe" part, they are just trying to avoid the whole vendetta the US started to have against Chinese companies. Imagine a nerd giving out their pocket money to the school bully.
Posted on Reply
#11
Daven
Vya DomusIt's more about the "safe" part, they are just trying to avoid the whole vendetta the US started to have against Chinese companies. Imagine a nerd giving out their pocket money to the school bully.
Agreed. My company is seeing many of our suppliers establishing a base in other countries to avoid tariffs. I think you can transfer goods between company branches and then sell locally in that branch's location. Presumably, those branches pay taxes on payroll, property, etc. so tariffs aren't needed.
Posted on Reply
#12
Mistral
Vya DomusIt's more about the "safe" part, they are just trying to avoid the whole vendetta the US started to have against Chinese companies. Imagine a nerd giving out their pocket money to the school bully.
At least TSMC not being a Chinese company has that going for them.
Posted on Reply
#13
Vya Domus
MistralAt least TSMC not being a Chinese company
Let's not get into that.
Posted on Reply
#14
Kaotik
Caring1This has nothing to do with pressure from Trump, it's smart business sense to expand and have a safe base of operations.
Exactly, in fact they already said earlier that they might expand to US (read: they already were but wasn't public yet) despite the pressure from the US Government, to which they had already answered that their business decisions are their own and US won't affect them.
Posted on Reply
#15
Steevo
Caring1This has nothing to do with pressure from Trump, it's smart business sense to expand and have a safe base of operations.
And the pressure put on TSMC by the Trump administration......
Posted on Reply
#16
AsRock
TPU addict
SteevoAnd the pressure put on TSMC by the Trump administration......
About time some one had some balls, if their was any such pressure to begin with.
Posted on Reply
#17
gamefoo21
Isn't Arizona a right to work state with low wages?

Hmmm....
Posted on Reply
#18
AsRock
TPU addict
gamefoo21Isn't Arizona a right to work state with low wages?

Hmmm....
Don't that just mean no unions ?, awesome. sick off their BS anyways.

Low wages, at least post some up to date links on that
Posted on Reply
Add your own comment
Nov 23rd, 2024 18:13 EST change timezone

New Forum Posts

Popular Reviews

Controversial News Posts