TSMC Arizona Achieves 4% Higher Yields Than Taiwanese Facilities, Marking Progress for US Silicon Manufacturing

[AleksandarK]

The American semiconductor landscape reached a significant milestone as TSMC's new Arizona manufacturing facility demonstrated remarkable production efficiency, exceeding its Taiwanese counterparts by 4% in yield rates. This achievement, revealed at a recent industry webinar by the company's US division chief, represents a major step forward in America's push to strengthen domestic chip manufacturing capabilities. Since initiating its 4 nm node production operations this spring, the Phoenix-based facility has demonstrated impressive technical proficiency, achieving production standards that match and surpass TSMC's established Taiwanese facilities. The project, backed by substantial federal support, including $11.6 billion in combined grants and loans plus significant tax incentives, aims to establish three cutting-edge manufacturing plants in Arizona.

The company's global leadership praised the facility's performance, noting its strategic importance in demonstrating TSMC's ability to maintain exceptional manufacturing standards across international locations. This success carries particular weight given the project's earlier hurdles, which included workforce challenges and timeline adjustments that shifted the entire production schedule by approximately one year. This development gains additional significance against industry-wide challenges, particularly as competitors like Intel and Samsung face operational and financial obstacles. The semiconductor giant's plans now extend to potential further expansion, with the Phoenix site capable of hosting up to six manufacturing facilities. Future growth prospects could be enhanced by proposed additional government initiatives supporting domestic chip production.



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[londiste]

This feels like pure marketing. Is that a direct comparison, manufacturing same things? Why do I suspect that is not the case

 

[bonehead123]

This feels like pure marketing. Is that a direct comparison, manufacturing same things? Why do I suspect that is not the case

Probably more of a feel good PR, to make the gov't feel like the billions we gave them was/is justified, cause we all know how the gvm't needs a pat on their backs every now & then

 

[napata]

This feels like pure marketing. Is that a direct comparison, manufacturing same things? Why do I suspect that is not the case

I don't think it's a lie though. The Arizona plant is brand new so it's most likely purely an advantage from newer tech/infrastructure. The operating cost is also going to be much higher for the fab in Arizona.

 

[TechBuyingHavoc]

It's most likely both PR and a legit accomplishment, no reason it can't be both. TSMC has built the plant, installed the tools, done all the validation on the process. It will fill up the capacity with orders to get a return on investment.

At the same time, this is a chance to get more government funding for future capacity increases. TSMC may utilize 100% of what is already online but that does not mean they will expand operations without further government money.

From a national security POV, the money is not wasted. The military is going to need a fab in the homeland for their chip needs if Taiwan is ever blockaded or invaded (or even a super-massive earthquake taking down the TSMC fabs).

 

[SOAREVERSOR]

It's most likely both PR and a legit accomplishment, no reason it can't be both. TSMC has built the plant, installed the tools, done all the validation on the process. It will fill up the capacity with orders to get a return on investment.

At the same time, this is a chance to get more government funding for future capacity increases. TSMC may utilize 100% of what is already online but that does not mean they will expand operations without further government money.

You nailed it! It's TSMC and government taking a moment to show that they are getting the results they wanted. Not only was it not a waste of money but it's done better than expected. That makes everyone willing to go along with more such investment where the Foxconn idiocy left a sour taste in everyone's mouths.

 

[freeagent]

To be fair, it is a brand new facility.. I am sure Arizona has some things that overseas does not.

What those things are.. I don't know

 

[TechBuyingHavoc]

To be fair, it is a brand new facility.. I am sure Arizona has some things that overseas does not.

What those things are.. I don't know

If you knew, you would be offered a crazy amount of money to either spread the secrets to someone else or to keep quiet.

Or the black helicopter would come in the middle of the night and silence you for good. I am pretty sure one of the targets I have taken care of in a Hitman game was a fab developer. /s

More seriously, the higher yields could be as simple as a perfect copy of a TSMC fab in Taiwan (with some experimentally determined fixes already in place for Arizona at time of installation/validation) dropped into Arizona and all the equipment being brand new. Any instrument, even ASML's DUV and EUV instruments, will degrade over time as wear and tear takes its toil and maintenance/repair does not restore the instrument to brand-new status, no matter how competent or thorough the maintenance is.

 

[SOAREVERSOR]

To be fair, it is a brand new facility.. I am sure Arizona has some things that overseas does not.

What those things are.. I don't know

In manufacturing or any sort of production you expect the newer plant to perform better because it's newer and you can apply the lessons learned from the older plant right off the bat. Thus the next fab should perform even better than this one.

There's nothing shocking about this plant doing better.

 

[tpuuser256]

In manufacturing or any sort of production you expect the newer plant to perform better because it's newer and you can apply the lessons learned from the older plant right off the bat. Thus the next fab should perform even better than this one.

There's nothing shocking about this plant doing better.

4% is not ginormous this make this theory very plausible

 

[freeagent]

Right now its 4%.. what if that changes to 10, or 15%?

Now were talking real money

 

[SOAREVERSOR]

4% is not ginormous this make this theory very plausible

And yet people go bonkers over 4% interest rate changes or inflation or failure rates. 4% is a lot when you're talking about something large scale.

 

[Assimilator]

4% is a lot when you're talking about leading-edge silicon fabrication nodes. Not just in raw numbers, but in terms of lower cost because you're turning out fewer duds.

 

[Redwoodz]

Right now its 4%.. what if that changes to 10, or 15%?

Now were talking real money

If it was -4% it would be more important than money still. The impacts of this are much more farther reaching than just money. Remember all the pundits who said our workers are dumb and lazy? MURICA!

 

[DaemonForce]

This is excellent news even if it's a PR stretch.
Reads like "We make best chips in the world here! U-S-A!"
But can we keep them?

 

[Shihab]

But... but... people were so vehement about how these things don't work in hot climates!

 

[SOAREVERSOR]

This is excellent news even if it's a PR stretch.
Reads like "We make best chips in the world here! U-S-A!"
But can we keep them?

The chips are going to go to the open market like normal. However if Taiwan is attacked by China and TSMC blows it's factories (they are rigged to blow up by TSMC because of the Chinese threat, even then there could be random earthquake) the US has it's own internal production now which can be locked to US businesses/defense to prevent a catastrophic problem for corporations and the military.

That is why this is happening.

 

[the54thvoid]

Pretty sad there are those pissing on this news. I'm not even from the US and I think it's great they achieved and surpassed yield parity.

I'll raise a glass to the TSMC workers in Arizona.

 

[DaemonForce]

That is why this is happening.

I'm honestly surprised it didn't happen much sooner.
You would think the last mild supply chain problem (~2016) turning every other statement of work into a sitting duck would be the writing on the wall.
Guess it took a scamdemic shutting down the whole planet for people at the helm to learn how to read. Better late than never.

 

[Count von Schwalbe]

You nailed it! It's TSMC and government taking a moment to show that they are getting the results they wanted. Not only was it not a waste of money but it's done better than expected. That makes everyone willing to go along with more such investment where the Foxconn idiocy left a sour taste in everyone's mouths.

To say nothing of how all that Intel money is going...

 

[TechBuyingHavoc]

If it was -4% it would be more important than money still. The impacts of this are much more farther reaching than just money. Remember all the pundits who said our workers are dumb and lazy? MURICA!

I hate to throw cold water on this but a lot of the labor that constructed and set up that Arizona lab was still TSMC employees from Taiwan, hence the big delays in construction. Not saying we don't have quality labor here but not in enough scale and extent, there is no large pipeline of education, training, and recruitment in the US like there is in South Korea, Japan to some extent, and Taiwan.

 

[tfp]

I hate to throw cold water on this but a lot of the labor that constructed and set up that Arizona lab was still TSMC employees from Taiwan, hence the big delays in construction. Not saying we don't have quality labor here but not in enough scale and extent, there is no large pipeline of education, training, and recruitment in the US like there is in South Korea, Japan to some extent, and Taiwan.

Definitely not at the salaries they pay in Taiwan and for the hours they work people.

 

[PerfectWave]

domestic chip manufacturing capabilities? lol the factory is not american what the fuhe is saying lol

 

[ThomasK]

That's great news for Intel, then. Let's see how long it takes before they cut Arrow Lake's MSRP.

 

[mechtech]

Right now its 4%.. what if that changes to 10, or 15%?

Now were talking real money

Next time Tiawan has an earthquake it might go to 10 or 15%

Having said that, hopefully they don't and if it does happen, hopefully it's weak.