AMD to Become Major Customer of TSMC Arizona Facility with High-Performance Designs

[AleksandarK]

After Apple, we just learned that AMD is the next company in line for US-based manufacturing in the TSMC Arizona facility. Industry analyst Tim Culpan reports that TSMC's Fab 21 in Arizona will soon be producing AMD's high-performance computing (HPC) processors, with tape out and manufacturing expected to commence on TSMC's 5 nm node next year. This move comes after previously reported Apple's A16 SoC production, which is already in progress at the facility and could see shipments before the end of this year, significantly ahead of the initially projected early 2025 schedule. The production of AMD's HPC chips in Arizona marks a crucial step towards establishing an AI-hardware supply chain operating entirely on American soil, which is expected to further expand with Intel Foundry and Samsung Texas facility.

Making HPC processors domestically serves as a significant milestone in reducing dependence on overseas semiconductor manufacturing and strengthening the US's position in the global chip industry. Adding to the momentum, TSMC and Amkor recently announced a collaboration on advanced packaging technologies, including Integrated Fan-Out (InFO) and Chip-on-Wafer-on-Substrate (CoWoS), which are vital for high-performance AI chips. However, as Amkor facilities are yet to be built, these chips are going to be shipped back to Taiwan for packaging before being integrated into the final product. Once the Amkor facility is up and running, Arizona will become the birthplace of fully manufactured and packaged silicon chips.



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[Daven]

I hope 5 and 7 nm nodes are available that cover 4, 5, 6 and 7 nm choices. That would allow AMD to make current and recent past chips in Arizona.

 

[TheLostSwede]

I hope 5 and 7 nm nodes are available that cover 4, 5, 6 and 7 nm choices. That would allow AMD to make current and recent past chips in Arizona.

All the chips produced by TSMC in the US will carry a higher unit costs than those made in Taiwan.

 

[AnotherReader]

All the chips produced by TSMC in the US will carry a higher unit costs than those made in Taiwan.

Is there any likely percentage figure for these higher costs?

 

[TheLostSwede]

Is there any likely percentage figure for these higher costs?

No clue, but considering labour costs are higher in the US, whatever comes out of the fab is going to cost more than what comes out of the fabs in Taiwan.

 

[dir_d]

No clue, but considering labour costs are higher in the US, whatever comes out of the fab is going to cost more than what comes out of the fabs in Taiwan.

Do you happen to know where they are going to be packaged at once the chips have been diced and tested?

 

[TheLostSwede]

Do you happen to know where they are going to be packaged at once the chips have been diced and tested?

I don't think anyone knows that, since TSMC doesn't package all the chips they make. A lot of that is done by 3rd parties and it seems like TSMC has already partnered up in the US with at least one company.

TSMC, Amkor to bring advanced chip packaging to U.S. for first time

Key for AI, deal marks milestone in American effort to build critical supply chain

asia.nikkei.com

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pr.tsmc.com

 

[StimpsonJCat]

Seems like a waste of time and money. This is last gen stuff, and more expensive to boot... I can't really see what this will be useful for? IO dies? RDNA 3 GPU's, which is a failed and expensive design? Old zen 4 stuff? Confusing.

If this was 3nm, it would be exciting, as it adds to availability and would bring prices down...

 

[mechtech]

All the chips produced by TSMC in the US will carry a higher unit costs than those made in Taiwan.

They probably won't care much since they will pass that costs unto the consumer.

 

[Prima.Vera]

No clue, but considering labour costs are higher in the US, whatever comes out of the fab is going to cost more than what comes out of the fabs in Taiwan.

If they are sold in US only or even South America, the price would be the same due to transport and logistics.

 

[TheLostSwede]

They probably won't care much since they will pass that costs unto the consumer.

Who will not care? TSMC or their customers? But yes, you're right, in the end, it's the end customer that ends up paying for it.

If they are sold in US only or even South America, the price would be the same due to transport and logistics.

Not a chance, the transport cost is at most 0.01% of what you pay for a chip made by TSMC. Maybe 0.02% if it's shipped by air.

 

[Baccala]

Who will not care? TSMC or their customers? But yes, you're right, in the end, it's the end customer that ends up paying for it.


Not a chance, the transport cost is at most 0.01% of what you pay for a chip made by TSMC. Maybe 0.02% if it's shipped by air.

I tend to agree with you but we shall see. There are a lot of other ways where foreign imports can become more expensive with the stroke of a pen. I wouldnt be shocked if legislative pressure ends up driving up prices overall but somewhat equalizes what the cost of a US made vs TW made chip would cost the retail buyer. Prior to breaking ground in AZ the paranoid part of my brain viewed TSMC as my top pick for 'company that will probably kick off a sino-american corpo war' So, as long as US made chips arent going to cost unfathomable amounts, I will take the peace of mind that we now have domestic fabs as a tradeoff.

 

[TheLostSwede]

I tend to agree with you but we shall see. There are a lot of other ways where foreign imports can become more expensive with the stroke of a pen. I wouldnt be shocked if legislative pressure ends up driving up prices overall but somewhat equalizes what the cost of a US made vs TW made chip would cost the retail buyer. Prior to breaking ground in AZ the paranoid part of my brain viewed TSMC as my top pick for 'company that will probably kick off a sino-american corpo war' So, as long as US made chips arent going to cost unfathomable amounts, I will take the peace of mind that we now have domestic fabs as a tradeoff.

Oh, fore sure, but transport and logistics isn't the part that would do that. However, if we add things like customs duties, taxes and what not, there might be some benefits to producing chips in the US vs. Taiwan vs. somewhere else. Also, keep in mind that these chips weigh almost nothing and they're tiny, so you can pack a huge amount of them into a shipping container, which is why I'm saying that transport and logistics isn't going to make a huge difference.
There are as you point out, plenty other reasons for TSMC to spread out its fabs around the world, but it's not going to make things produced at those fabs cheaper, due to shipping costs.