TSMC, Arizona to manufacture 3nm chips Another Fab is planned in Phoenix. | So Good News

Taiwan Semiconductor Manufacturing Company (TSMC) in Arizona Another semiconductor manufacturing plant north of Phoenix is ​​planned. The factory will be able to produce 3nm transistors.

The new facility is said to be an expansion of Fab 21 under TSMC’s operations in Arizona. Fab 21 expects to begin production of 5nm chips as early as 2024.

The news comes after Washington tried to lure chipmakers to the country by offering lucrative subsidies. Several countries in Europe are also pushing for domestic chip production after chip supply shortages starting in 2021 have revealed a bottleneck in the industry’s supply chain.

The shortage was also caused by high demand for consumer electronics during the pandemic, forcing many people to move their classrooms and workplaces home. With factories and ports blocked, supply shortages plunged to their worst.

TSMC invested about $12 billion to build its Fab 21 plant. The investment to expand is said to be the same. Chip executives believe global sales for semiconductors will double to more than $1 trillion a year over the next decade, fueling massive upfront investment.

The US has allocated about US$39 billion as part of its subsidy for domestic semiconductor manufacturing. In addition to tax cuts on semiconductor manufacturing equipment and other items, the subsidies will begin next year.

TSMC also announced an investment of about $40 billion to build four new production lines in Taiwan and is considering expanding factories in Japan and Singapore.

Source: The Wall Street Journal