TSMC Delays Launch of Arizona Phase 2 Facility

[T0@st]

TSMC's Fab 21 Phase 2 facility is currently under construction in the Greater Phoenix area, Arizona—this secondary production facility was originally announced as housing a 3 nm process production line (opening by 2026), but that company target will be missed by a sizable margin. The transcription of the company's Q4 2023 Earnings Call presents another set of shifted expectations—outgoing CEO, Dr. Mark Liu—admitted that a number of factors are expected to delay Phase 2's opening by another year or two: "The second fab shell is under construction, but what technology [to use] in that shell is still under discussion...I think that also has to do with how much incentives that fab, the U.S. Government can provide…The current planning [for the fab] is '27 or '28, that will be timeframe."

Industry analysts believe TSMC leadership have a tough choice to make—the second Arizona factory's delayed launch could provide enough lead time to upgrade with a more advanced node (e.g. 2 nm), but ambitions could be lowered for the troubled site. An older plus more mature fabrication process could be a better fit, although the neighboring Fab 21 Phase 1 site is already set for a full 2025 initiation on 4 nm FinFET. Liu outlined this challenge: "To be honest, most of the overseas fabs, what technology is being set up, really, it is a decision of customers' demand in that area at that timing. So, nothing is definitive, but we are trying to optimize value for the overseas fab for TSMC." The current chairman will not be around for Phase 1's full deployment, but he shared some positive Arizona-related news: "We are well on track for volume production of N4, or 4 nm process technology, in the first half of 2025 [in Arizona] and are confident that once we begin operations, we will be able to deliver the same level of manufacturing quality and reliability in Arizona as from our fabs in Taiwan."



View at TechPowerUp Main Site | Source

 

[A&P211]

I can turn all of those words into 4 words.
"give us more money"

 

[bonehead123]

I can turn all of those words into 4 words.
"give us more money"

Actually, it's "give ME mo money" so I can buy another yacht, learjet, beachhouse, maserati etc (or 12) etc....

 

[TheLostSwede]

Actually, it's "give ME mo money" so I can buy another yacht, learjet, beachhouse, maserati etc (or 12) etc....

I don't normally reply to your boneheaded comments, but in this case, you couldn't be further from the truth.
The TSMC bosses get comparatively small salaries at under US$20 million (this is 2022 figures) which is not going to get you any of those things except maybe the last one.
Yes, it's still a boatload of money, but nothing like what their US counterparts make.

 

[Gooigi's Ex]

I don't normally reply to your boneheaded comments, but in this case, you couldn't be further from the truth.
The TSMC bosses get comparatively small salaries at under US$20 million (this is 2022 figures) which is not going to get you any of those things except maybe the last one.
Yes, it's still a boatload of money, but nothing like what their US counterparts make.

I’m sorry but under $20 million dollars can still be millions of dollars so if a big boss of a very big company that gets under $20 million dollars and ONLY afford a Maserati? There’s DEFINITELY something wrong with that lol. It may not be the BEST OF BEST stuff but way more fancy than regular folks can get.

 

[A&P211]

I don't normally reply to your boneheaded comments, but in this case, you couldn't be further from the truth.
The TSMC bosses get comparatively small salaries at under US$20 million (this is 2022 figures) which is not going to get you any of those things except maybe the last one.
Yes, it's still a boatload of money, but nothing like what their US counterparts make.

I am so sick of these local states that give billions and billions in tax benefits but never see anything paid back. Its not only tech companies, its sports and manufacturing companies, esp. one that makes EV cars that starts with a T. They have a battery factory in Reno, NV, in the the US, the local country sent millions and millions on the roads and taxes but the county will never see that money paid back. It only hurts the local residents in higher taxes while the company is the only one that benefits.

 

[Minus Infinity]

Luckily Arizona is a high rainfall state with vast unlimited reserves of freshwater required for these plants to operate.

 

[jsfitz54]

Luckily Arizona is a high rainfall state with vast unlimited reserves of freshwater required for these plants to operate.

Says you, with the dry humor!

 

[A&P211]

Says you, with the dry humor!

your comment got me all wet^*in my eyes

 

[YCC2323]

I am so sick of these local states that give billions and billions in tax benefits but never see anything paid back. Its not only tech companies, its sports and manufacturing companies, esp. one that makes EV cars that starts with a T. They have a battery factory in Reno, NV, in the the US, the local country sent millions and millions on the roads and taxes but the county will never see that money paid back. It only hurts the local residents in higher taxes while the company is the only one that benefits.

come on, NV just give them tax benefits(which means they just pay less in coperate income tax) and they actually created more than 1000 job opportunities locally. These people also facilitate local business which is more important.

 

[remixedcat]

if AZ won't help WV needs ta step in! We need more tech jobs here!

Land is cheap
Broadband is decent in parkersburg, fairmont, clarksburg, morgantown and charleston. Pkb is by the ohio river, taxes are allready low, there's tons of spots that are allready cleared w infra, etc...

 

[Easo]

Incentives, lul. The evergreen pieces of paper can be called that I suppose.

 

[las]

Apple wanting TSMC 3nm in Arizona made sense back in the time. Apple wanted chip production out of Asia. Now tho, Intel has 20A and soon 18A up and running. And they only build fabs in US/EU for this exact reason. Alot of companies wants to produce chips in US/EU instead of Asia and Intel is looking to gain process leadership in the following years.

Their 18A fab in Magdeburg Germany is soon ready to roll.

 

[TheLostSwede]

Apple wanting TSMC 3nm in Arizona made sense back in the time. Apple wanted chip production out of Asia. Now tho, Intel has 20A and soon 18A up and running. And they only build fabs in US/EU for this exact reason. Alot of companies wants to produce chips in US/EU instead of Asia and Intel is looking to gain process leadership in the following years.

Their 18A fab in Magdeburg Germany is soon ready to roll.

You're aware it's going to take Apple at least a year to transition from TSMC to Intel, right? Their nodes are nothing alike and a year is if Apple is lucky, it might be twice that if they're not. It's not easy to transition from one foundry to another and Intel has as yet to show any kind of yields on their claimed Ångström marketing nodes.

 

[the54thvoid]

Posts removed - Thread isn't about EV's

 

[timinindiana]

United States "In a few more years we will no be so dependent on Taiwan for the critical Chips we need"

China " in a few more years when America is not so dependent on Taiwan for chips we will invade"

Taiwan " Keep those delays going boys"

 

[remixedcat]

United States "In a few more years we will no be so dependent on Taiwan for the critical Chips we need"

China " in a few more years when America is not so dependent on Taiwan for chips we will invade"

Taiwan " Keep those delays going boys"

you got a point for some reason...