Apple, Nvidia And Other US Tech Giants Turn To TSMC's Upcoming Arizona Plant For Advanced Chip Production

Apple and Nvidia are set to be among the first customers for Taiwan Semiconductor Manufacturing Co.'s new plant in Arizona, with Advanced Micro Devices (AMD) and Xilinx also in talks to buy output from the plant.

The TSMC's Arizona plant is set to set to begin production of advanced chips using 3-nanometer technology by the end of next year.

This latest development between TSMC and top American chip developers marks a victory for Washington in its push to onshore vital semiconductor production.

TSMC originally planned to produce 20,000 wafers a month in Arizona using 5- and 4-nanometer process technology, but it now aims to double that capacity and make even more advanced chips there using 3-nanometer technology, reports Nikkei Asia.

The plant, which has a $12 billion price tag, is set to play a key role in US plans to bring more chip production onshore with commencement of operation slated by end of next year at the unit.

TSMC plans to invest more than the $12 billion it has already committed to its new plant in Arizona, which will produce 3-nanometer chips.

President Biden and US Commerce Department Secretary Gina Raimondo will attend TSMC's tool move-in event in Arizona on Tuesday.

The ceremony, which was delayed due to COVID-19 and labor shortages, marks the start of the installation of essential equipment at the plant. It will take up to a year for production lines to be qualified and production to ramp up.

TSMC founder Morris Chang has confirmed that TSMC will bring the latest 3-nanometer chip production. However, Chang added that the US production of the advanced chips would be 50 per cent more expensive than in Taiwan.

TSMC's current production base for 3-nanometer chips is in the southern Taiwanese city of Tainan, where production using the technology began only recently.

Samsung and Intel are also expanding chip production footprints in the US.

The new plant marks a victory for Washington in its push to onshore semiconductor production and highlights the importance of TSMC's new plant to US chip ambitions.

President Biden's attendance at the ceremony marking the installation of the first equipment at the facility further underscores this point.

The collective market cap of companies expected at the ceremony is about $4 trillion, making it one of the most important semiconductor industry gatherings in the post-pandemic era.