TSMC Announces Updates for TSMC Arizona

[btarunr]

TSMC today announced that in addition to TSMC Arizona's first fab, which is scheduled to begin production of N4 process technology in 2024, TSMC has also started the construction of a second fab which is scheduled to begin production of 3 nm process technology in 2026. The overall investment for these two fabs will be approximately US$40 billion, representing the largest foreign direct investment in Arizona history and one of the largest foreign direct investments in the history of the United States.

In addition to the over 10,000 construction workers who helped with construction of the site, TSMC Arizona's two fabs are expected to create an additional 10,000 high-paying high-tech jobs, including 4,500 direct TSMC jobs. When complete, TSMC Arizona's two fabs will manufacture over 600,000 wafers per year, with estimated end-product value of more than US $40 billion.



In line with TSMC's commitment to green manufacturing, it was also revealed that TSMC Arizona is in the planning stages for an on-site Industrial Water Reclamation Plant that when finished, will allow the TSMC Arizona site to achieve near zero liquid discharge.

"When complete, TSMC Arizona aims be the greenest semiconductor manufacturing facility in the United States producing the most advanced semiconductor process technology in the country, enabling next generation high-performance and low-power computing products for years to come," said TSMC Chairman Dr. Mark Liu. "We are thankful for the continual collaboration that has brought us here and are pleased to work with our partners in the United States to serve as a base for semiconductor innovation."

The announcements were made at TSMC's opening ceremony to celebrate the first batch of state of-the-art semiconductor manufacturing equipment to arrive in TSMC Arizona. The event took place in Phoenix, Arizona and brought together TSMC leaders, customers, suppliers, partners, government officials, and academia leaders to commemorate a milestone in TSMC's journey to bring leading-edge semiconductor manufacturing to the United States.

Presiding over the ceremony were TSMC Founder Dr. Morris Chang, TSMC Chairman Dr. Mark Liu, and TSMC CEO Dr. CC Wei. Notable guests of the event included President Joseph R. Biden, Jr., Department of Commerce Secretary Gina Raimondo, Arizona State Governor Doug Ducey, Phoenix City Mayor Kate Gallego, Apple CEO Tim Cook, AMD Chair and CEO Dr. Lisa Su and NVIDIA President and CEO Jensen Huang.

During the ceremony, TSMC revealed six semiconductor tools which are designed to support production of leading-edge semiconductor process technology. Among these include tools from long-time suppliers Applied Materials, ASM, ASML, Lam Research, KLA and Tokyo Electron.

"I'm deeply honored that we have been able to gather here to celebrate such a historic milestone for TSMC, which represents our dedication to building a semiconductor ecosystem here in the USA in order to better serve our customers," said TSMC CEO Dr. CC Wei during the ceremony. "This project is truly a testament to the Grand Alliance TSMC has formed with customers, suppliers and partners to further our collaboration and unleash innovation."

View at TechPowerUp Main Site

 

[bonehead123]

Sooooo, spend $40B to make $40B.... Makes me wonder just how much of that is actually coming out of their own pockets ????? My guess is somewhere around, oh I don't know, like probably a grand total of $0.00....the majority of which is most likely from the Chips Act, in other words: US Taxpayers

Otherwise it doesn't seem like a very good business model to me

 

[phanbuey]

Sooooo, spend $40B to make $40B.... Makes me wonder just how much of that is actually coming out of their own pockets ????? My guess is somewhere around, oh I don't know, like probably a grand total of $0.00....the majority of which is most likely from the Chips Act, in other words: US Taxpayers

Otherwise it doesn't seem like a very good business model to me

That seems like a great business model.

 

[mechtech]

Sooooo, spend $40B to make $40B.... Makes me wonder just how much of that is actually coming out of their own pockets ????? My guess is somewhere around, oh I don't know, like probably a grand total of $0.00....the majority of which is most likely from the Chips Act, in other words: US Taxpayers

Otherwise it doesn't seem like a very good business model to me

Well spend $40 bill to make $40 bill per year for the next 10+ years, pretty good deal.

and

Makes me wonder just how much of that is actually coming out of their own pockets ????? My guess is somewhere around, oh I don't know, like probably a grand total of $0.00....the majority of which is most likely from the Chips Act, in other words: US Taxpayers

That's right peasants, pay up. Just because it's 2022, doesn't mean the rich still live like its 1500 or antiquity or entire human history. But at least you have a fab now, better than nothing.

edit - anyone in this business? $40,000,000,000/600,000 wafers ~ $66,667/wafer?!?! Is that right?? Seems high to me.

 

[Count von Schwalbe]

edit - anyone in this business? $40,000,000,000/600,000 wafers ~ $66,667/wafer?!?! Is that right?? Seems high to me

end-product value

1x 4nm wafer costs $18,000.

AD102 (4090) costs around $120 - so end product value of a $18,000 wafer is around $184,000 if it is all 4090s.

 

[Steevo]

1x 4nm wafer costs $18,000.

AD102 (4090) costs around $120 - so end product value of a $18,000 wafer is around $184,000 if it is all 4090s.

Minus memory, PCB manufacturing, assembly, loss, shipping, and the investment in design, driver and software support, and then sales to retailers aren’t at retail, so they probably sell them to retailers at 75% of retail price
Nvidia are probably doubling their investment with each card sold

 

[watzupken]

In my opinion, having chips produced in US is a double whammy to the citizens. In this case, taxpayer's money is used for the purpose of the CHIPS ACT to entice foreign tech companies to manufacture onshore. The end result is like more costly chips, in which people who paid their taxes will have to pay again. There is the benefit of job creation, but I am not sure if it will outweigh the costs here. These fab will also compete with citizens on power and water to operate.

 

[Nanochip]

In my opinion, having chips produced in US is a double whammy to the citizens. In this case, taxpayer's money is used for the purpose of the CHIPS ACT to entice foreign tech companies to manufacture onshore. The end result is like more costly chips, in which people who paid their taxes will have to pay again. There is the benefit of job creation, but I am not sure if it will outweigh the costs here. These fab will also compete with citizens on power and water to operate.

What happens if tsmc doesn’t diversify and Taiwan is invaded… then no chips for Americans. It’s a hedge against the risk of Chinese aggression. Hopefully china doesn’t invade. And the world maintains relative peace.

 

[maxfly]

"In line with TSMC's commitment to green manufacturing, it was also revealed that TSMC Arizona is in the planning stages for an on-site Industrial Water Reclamation Plant that when finished, will allow the TSMC Arizona site to achieve near zero liquid discharge."

That's pretty damn impressive considering the amount of water required. At the rate that the west is running out of water resources it should be a prerequisite for any large company going forward.

One step closer to relieving our unacceptable dependence on foreign based fabs. A repeat of COVID shortages and the economic gut punch it caused can never be allowed to happen again.

 

[TheLostSwede]

Tim Cook seems to be happy.

https://twitter.com/i/web/status/1600269228191645698

 

[tony359]

I’m not into politics too much but I don’t think that’s done to save money or to create jobs but to try to not have all your eggs in a basket (=China if taiwan is invaded).
Better to have expensive chips than no chips.

 

[TheoneandonlyMrK]

Minus memory, PCB manufacturing, assembly, loss, shipping, and the investment in design, driver and software support, and then sales to retailers aren’t at retail, so they probably sell them to retailers at 75% of retail price
Nvidia are probably doubling their investment with each card sold

It's plus all those not minus and many of those need fabrication.

600,000 wafers a Year at 18000 a piece is 10,800,000,000 so that 40 billion will be recouped fast and a fab lasts.

 

[pizzafartz]

Close to the desert means free sand too! lmao