TSMC Joins the ‘Semiconductors in America Coalition’ and Plans to Build New Factories in the U.S.
Last updated June 20, 2021
- TSMC joins the American chip coalition to be among those who will benefit from government subsidies.
- There are leaks from anonymous sources talking about TSMC’s plans to build six new plants in Arizona.
- Chip shortages are getting worse, and the political games between the U.S. and China get harsher.
TSMC has joined the newly-formed ‘Semiconductors in America Coalition,’ adding to the ranks of another 65 US-based tech giants looking to secure their interests during these turbulent times of chip shortage. The particular entity holds gravity in the field, as it the world’s most valuable semiconductor company - and also the largest dedicated independent chip foundry.
In addition to this, TSMC has decided to scrap the plans for a new Europe-based plant and instead build it in the United States. The firm already announced that they would invest $12 billion to build a new 5-nanometer production facility in Phoenix last year, but this appears to be only one of a total of six new factories that will be raised in Arizona. The new plans that were shared with Reuters present a technologically advanced 3-nanometer facility that would cost TSMC $25 billion.
The same source claims that the firm will then proceed with more aspiring plans relevant to the next-gen 2-nanometer technology. The entire Phoenix campus comprising six new facilities is estimated to be completed within 10 to 15 years.
This is complicating things for TSMC, the U.S., and also China. The ‘Semiconductors in America Coalition’ is very close to getting significant subsidies from the U.S. government, and obviously, this is why TSMC was quick to scrap the Europe-related plans. However, TSMC remains based in Taiwan and will continue to operate there. If the U.S. funds accelerated R&D for TSMC, it could have long-term repercussions for American chipmakers such as Qualcomm or Intel.
At the same time, China is walking on a tight rope because TSMC is planning to build next-gen facilities on American soil and doesn’t have similar plans for Taiwan. This could shift the market dynamics very quickly, so the situation is quite complicated right now.
All of this happens with the chip shortages growing worse in the background and more and more suppliers, assemblers, and product vendors finding themselves unable to source chips and make products. Everyone expects component shortages to get more severe in the summer, and many report lead times that reach up to 52 weeks.
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