December 8, 2022
The new factory will provide manufacturing services at 3 nm and will start operating in 2026. The second factory produced in 4 nm. Apple and AMD will be the first customers. Intel’s CEO welcomed. TSMC expects stagnation in the next quarter
[בתמונה: אחד הפאבים של TSMC]
The Taiwanese manufacturing contractor TSMC announced this week that it has begun preparations to build another chip manufacturing plant in Arizona. The plant, which is expected to start production in 2026, will focus on the production of chips with the most advanced geometry of 3 nanometers. These days, TSMC is in the process of building another factory in Arizona, which will be the company’s first in the United States and will focus on the production of 4 nm chips. The total investment in the establishment of the two factories is estimated at 40 billion dollars, and is one of the largest direct investments made by a foreign company in the United States.
The two factories are expected to employ about 10,000 workers. Apple and AMD, one of TSMC’s most prominent customers, have already announced that they will purchase services from the new factories in Arizona. According to TSMC, the production output of the two plants together will be 600 thousand silicon wafers per year for products with a total value of 40 billion dollars per year. TSMC also added that these plants will operate according to the highest environmental standards.
TSMC’s revenues in the third quarter were $20.2 billion, an annual growth of 35.9%. The segmentation of revenues shows that 28% of all revenues came from chips manufactured at 5 nanometers, and about 26% from production at 7 nanometers. However, in the fourth quarter TSMC expects a stagnation in business activity, and this against the background of “weakening demand in end markets and the continuation of steps among customers to reduce inventories.”
The CEO of Intel congratulates
TSMC’s massive investment in Arizona joins the construction boom of the chip manufacturers, who are investing huge resources in expanding production capacities, mainly in the United States, in anticipation of a constant increase in demand for chips in the coming years. Intel, which currently operates 4 manufacturing plants in Chandler, Arizona, last year began the construction of two additional plants, Pub-52 and Pub-62, with a total investment of 30 billion dollars (together with the Brookfield investment fund), and this as part of the strategy led by CEO The company, Pat Gelsinger, to turn Intel into a leading chip manufacturing contractor, which will compete with TSMC, among others. Intel also intends to establish manufacturing plants in Ohio and Germany. Micron and TI are also building new manufacturing plants in the United States.
In a tweet on Twitter, the CEO of Intel commented on the establishment of the TSMC plant in Arizona: “We congratulate our friends at TSMC on the occasion of the launch of the plant in Arizona. We are big believers in a diverse and resilient global chip manufacturing industry.” Intel established its first factory in Arizona in the early 1980s. “With the investments of Intel, TSMC and others – the residents of Arizona will be an important part of the industry’s future.” Gelsinger recently estimated that chip manufacturers’ revenues in 2030 will reach a trillion dollars, compared to estimated revenues of approximately 630 billion dollars this year.
One of the catalysts that contribute to the fact that the chip manufacturer invests in establishing production capabilities mainly on the soil of the United States, is, among other things, the chip law approved by the American government in August. the law (CHIPS Act) provides government support in the amount of approximately 52.7 billion dollars for the construction of chip manufacturing infrastructures in the USA, and another 24 billion dollars in the form of tax incentives for the establishment of manufacturing infrastructure in the United States over the next ten years. At the same time, a law was also approved The Science Act, which provides a support budget of 170 billion dollars for research and development projects in the field of chips.
Published in the categories: news, manufacturing and subcontracting, semiconductors
Posted in tags: TSMC , Arizona
