TSMC aims to build supply chain in U.S. to cut costs

Taipei, Jan. 16 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) is aiming to build a supply chain in the United States, where the chipmaker is making massive investments, to reduce costs to levels in Taiwan, company chairman C.C. Wei (魏哲家) said Thursday.

Speaking at an investor conference, Wei said that Arizona in the U.S. lacks a comprehensive supply chain. This means TSMC has to transport some items from Taiwan, which pushes up operating costs.

TSMC, which dominates global high-end chip production, is investing US$65 billion in Arizona to build three advanced wafer fabs.

According to Wei, the first fab using the advanced 4-nanometer process started mass production in the fourth quarter of last year, ahead of schedule, with yield rates close to Taiwan's.

To build a comprehensive supply chain in Arizona, Wei said, TSMC still needs assistance from the U.S. government.

Meanwhile, the progress of the second and third fabs in Arizona is on schedule, Wei said.

Wei added that those two fabs will use more sophisticated processes.

The second fab will mass-produce chips using the 3nm and 2nm processes from 2028. The third, using the 2nm process or more advanced technology, referring to the A16 technology, is expected to start production in 2030.

The 3nm process is the latest technology TSMC has launched for commercial production.

Wei said that in Japan, TSMC's first fab began commercial production at the end of 2024, using specialty processes, while construction of a second fab will start later this year.

In Germany, Wei said, TSMC's investment plan is proceeding smoothly. In August 2024, TSMC broke ground on a 12-inch wafer fab in Dresden.

Although TSMC is diversifying its production globally, Wei said, the company is determined to develop advanced processes in Taiwan first.