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Future Arizona plant plans not yet finalized: TSMC

11/09/2022 10:32 PM
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CNA file photo
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Taipei, Nov. 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, on Wednesday said it has not yet finalized plans to build a second chip manufacturing plant in the U.S. state of Arizona.

The statement comes following a report in the Wall Street Journal that claimed TSMC was preparing another multibillion-dollar factory investment in Arizona.

TSMC's investment in Arizona is expected to be around US$12 billion, which it committed in May 2020 to a 5-nanometer wafer fab in the U.S. state, the report said.

According to the report, the planned new facility for producing cutting-edge 3-nm semiconductors will be built north of Phoenix, beside TSMC's 5nm fab in Arizona.

Earlier this month, TSMC said it would hold the first tool-in ceremony for its 5nm wafer fab in Arizona in December to install the first batch of production equipment in the plant.

In response to the WSJ report, TSMC said in a statement Wednesday its facilities under construction in Arizona include a building that could serve as its second chip manufacturing plant there.

The building is being constructed concurrently with its first fab to enhance efficiency and cut costs, TSMC said.

The building will give TSMC more flexibility for future expansion, according to the company.

However, TSMC said it has not yet reached a final decision for a second fab.

"In light of the strong customer demand we are seeing in TSMC's advanced technology, we will consider adding more capacity in Arizona with a second fab based on operating efficiency and cost economic considerations," the company said in the statement.

TSMC did not directly respond when asked if its next plant would produce more advanced chips with 3-nm technology compared to the slower, less-efficient 5-nm technology used in the existing factory.

(By Jackson Chang and Evelyn Kao)

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