TSMC has started mass production of 4nm semiconductors in Arizona, USA. How will this groundbreaking project impact the future of the U.S. semiconductor industry?
🟦 U.S. First 4-nanometer semiconductor mass production begins: TSMC’s Arizona factory challenges and future
TSMC, the world’s largest contract semiconductor manufacturing company, has started mass production of semiconductors using the 4nm process at its first factory in Arizona. 4nm technology is an ultra-fine circuit used in modern smartphones and high-performance computers to improve performance and save power. This technology was previously manufactured only in Taiwan, but it can now be manufactured in the United States, making it the first mass production of advanced semiconductors in the United States. The products are for US companies such as Apple and AMD, and they contribute to improving the performance of smartphones and processors.
🟦 Why did TSMC build a factory in the United States?
TSMC’s construction of the Arizona plant was strongly supported by the U.S. government. The Biden administration enacted the CHIPS and Science Act to promote the return of cutting-edge semiconductor manufacturing to Japan. TSMC is provided with $6.6 billion in subsidies and up to $5 billion in loan guarantees. In doing so, we are supporting our goal of increasing our share of the U.S. advanced semiconductor market to 20% by 2030.
Construction of TSMC’s Arizona plant: timeline
- 2021
- Construction of the first Fab 21 plant near Phoenix, Arizona, begins.
- 2022
- The U.S. Congress enacted the CHIPS and Science Act, creating a $52.7 billion semiconductor manufacturing and research grant program.
- April 2023
- TSMC announced that it will add $25 billion to its investment plan for the Arizona project, bringing the total investment to $65 billion.
- November 2024
- The U.S. Department of Commerce has decided to provide a $6.6 billion grant for TSMC’s Arizona operations. It also announced that it will provide low-cost loan guarantees of up to $5 billion.
- Early 2025
- Mass production of advanced semiconductors using 4nm process technology begins at the first plant.
- 2028 (forecast)
- The second plant plans to start chip production using 3nm process technology.
- Until 2030 (forecast)
- The third plant will start production of chips using 2nm and 1.6nm process technologies.
🟦 Summary
TSMC’s start of mass production of 4nm semiconductors in Arizona is an important step for the United States to open up the future of the semiconductor industry. With U.S. workers maintaining manufacturing and quality, and government support, expectations for the U.S. semiconductor self-sufficiency will increase.
Considering the background of the birth of the semiconductor industry in the United States, the revival of state-of-the-art process manufacturing in the United States can be said to be a return to the basics.