TSMC approves $3.5 billion spending for Arizona fab

November 10, 2020 //By Peter Clarke
TSMC approves $3.5 billion spending for Arizona fab
The board of directors of the world's leading foundry TSMC has approved an investment of US$3.5 billion to establish a wholly-owned subsidiary in Arizona.

The funding is an initial tranche of what ultimately could be a $12 billion spend although significant support is expected to come from the Arizona state and US federal government (see TSMC picks Arizona for 5nm wafer fab ).

The plan to build a fab was made in May and was seen as one of the policy successes for the Trump administration in its goal of bringing manufacturing and supply chains back the US from Asia. TSMC seems ready to follow through on the plan despite the expectation that Joe Biden will become the next President.

TSMC has been under pressure to build a wafer fab in the US from both the Trump administration and leading US customers such as Apple. TSMC has previously said that construction is due to start in 2021 with chip production intended to begin in 2024. The total cost of the project would be about $12 billion from 2021 to 2029.

However, with a 5nm starting point and a manufacturing capacity of 20,000 wafer starts per month it is set to be smaller than TSMC's largest wafer fabs and behind the leading-edge.

At the same board meeting TSMC approved an appropriation of US$15.1 billion to cover upcoming capital expenditure for both chip fabrication and packaging capacity and to cover R&D spending in the 1Q21.

Related links and articles:

www.tsmc.com

News articles :

TSMC picks Arizona for 5nm wafer fab

US talks to Intel, TSMC about building local foundry fabs

Second piece of US legislation earmarks $25 billion for domestic chip making

Chiplet-savvy TSMC to build $10 billion assembly and test plant


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