Is TSMC’s U.S. factory made in Taiwan?

TSMC "Manufactured in Taiwan & Assembled in the U.S." Strategy

🟩TSMC’s new plant in the U.S.

TSMC is building a new plant in Arizona, USA, at a cost of $12 billion. Mass production of 5nm process products is scheduled to begin in 2024. The Fab 21 is planned to be launched with a monthly production capacity of 20,000 wafers.

We plan to use 4,000 to 5,000 containers to transport this fab facility from Taiwan to the United States. Partly due to the shortage of international containers, the total transportation cost will rise to about 110 million dollars (12 billion yen).

🟩 To reduce costs and ensure quality

TSMC says that the cost of building fabs in the U.S. is more than five times higher than in Taiwan. In order to reduce factory construction costs, part of the plant will be built and transported in Taiwan. That way, even considering the transportation cost, it will be cheaper.

Leveraging Local Companies

Manufacturing equipment used in advanced processes such as ASML, AMAT, KLA, LAM Research is delivered directly to Arizona as usual. As for the local company equipment used by TSMC, it seems to set up in Taiwan and then ship it to the US.

Facilities include clean rooms, air conditioning, electricity, water supply and drainage, and exhaust systems. That’s why Chinese company Jiangxi Hantang System Integration Co Ltd has signed a contract with TSMC and has already sent engineers to Arizona.

First overseas advanced process plant

TSMC has been building a leading fab in Taiwan for many years. Therefore, it is imagined that the mechanism for standardizing with overseas sites such as setting up fab equipment is weak. In order to maintain the same yield as the Taiwanese fab, we want to have the same equipment as Taiwan as much as possible.

🟩 Conclusion

TSMC’s U.S. plant equipment will be manufactured and transported in Taiwan, where there is a proven track record for cost reduction and quality assurance.

If TSMC’s factory were to be built in Japan, a similar large number of Chinese engineers would come and respond.

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