Apple Chip Supplier TSMC Celebrates Arizona Factory Nearing Completion

[MacRumors]

Apple chip supplier TSMC recently hosted a topping-out ceremony for its new fabrication plant in Phoenix, Arizona, DigiTimes reports.

TSMC's topping-out ceremony in Arizona​

The $12 billion factory will be the first of its kind to mass-produce 5nm chips in the United States. All of Apple's latest chips, dating back to the A14 Bionic and M1 chip, are fabricated with a 5nm process. In a post on LinkedIn, TSMC said:

Great progress continues on our 5-nanometer semiconductor fab – "FAB 21" – in #Phoenix, #Arizona. We recently celebrated placing the last beam – also known in the construction industry as a "topping" milestone - in FAB 21's fab building with our local partners. Over 4,000 attendees were on hand to enjoy this important moment including our own employees and partners. #TSMCArizona is on time and on track to bring the most advanced leading-edge semiconductor technology to the U.S.. We are deeply grateful to our partners and look forward to more successful milestones in Arizona.

Last year, TSMC Chairman Mark Liu announced that the company's Arizona plant will begin mass production in the first quarter of 2024. Likely clients for the chips made in the Arizona factory include Nvidia, Qualcomm, and Apple. The new Arizona plant will make it theoretically possible for Apple's 5nm custom silicon chips, to be manufactured within the United States for the first time.

Apple is rumored to move its custom silicon to a 3nm process starting with the M2 Pro or M3 chip. The iPhone 14 Pro's A16 chip is expected to continue being made with a 5nm process, so it is highly likely that Apple will still need a supply of 5nm chips from TSMC by early 2024 when the Arizona plant opens for mass-production.

TSMC's main factories are located in Taiwan, but it already operates a factory in Camas, Washington, as well as design centers in Austin, Texas and San Jose, California, meaning that the Arizona facility will be its second manufacturing site in the United States. Yesterday, it was reported that Apple is opening a new development site in Israel to develop future custom silicon chips for the Mac.

Article Link: Apple Chip Supplier TSMC Celebrates Arizona Factory Nearing Completion

 

[Leon Ze Professional]

Good to see TSMC expand its operations in other geographic locales. This is an important step for both United States and the whole western world.

Due to threats against Taiwan 🇹🇼. Which we hope never eventuate.

 

[DelayedGratificationGene]

Great! Hope we see more of this. Congratulations to all.

 

[BootsWalking]

Look at that, $12B of domestic chip plant investment that didn't need $52B in US government subsidies (handouts). And we sued Airbus/Europe for the same thing a few years ago.

 

[Shirasaki]

TSMC should accelerate their process to emigrate their key technologies out of Taiwan strait, eventually enabling the whole process (from design to manufacturing) to be completed elsewhere. Hopefully this new Arizona factory will be upgraded soon with the capability to fabricate more advanced chips. But able to fabricate 5nm is already a good start.

 

[huge_apple_fangirl]

Just in time for CHIPS

 

[bradman83]

I’m happy to see this type of thing being built in the US, but is Phoenix really the best choice for this? Semiconductor manufacturing uses a lot of water, and Phoenix (and the entire Southwestern US) doesn’t exactly have a lot to spare given the mega-drought.

 

[pauloregan]

There isn't enough ZZ Top cosplay in Apple's keynotes. Hopefully this is about to change.

 

[R!TTER]

Look at that, $12B of domestic chip plant investment that didn't need $52B in US government subsidies (handouts). And we sued Airbus/Europe for the same thing a few years ago.

The vast majority of that will go to Intel & their executive bonuses. Heck Pat Gelsinger was almost begging for it.

 

[nikaru]

Great! More factories, in more countries and different locations is fundamental for guaranteeing supply in case of geopolitical, military and/or environmental/natural disaster crisis. Hope we will see one of these facilities in Europe soon as well.

 

[JosephAW]

Sadly this will go the same way as of the sapphire project, it’ll be a complete disaster and money wasted.

 

[gsurf123]

Sadly this will go the same way as of the sapphire project, it’ll be a complete disaster and money wasted.

If so at least a lot of it is not on the taxpayer.

 

[W2u7Yw4HaD]

Sadly this will go the same way as of the sapphire project, it’ll be a complete disaster and money wasted.

Doubtful, since TSMC knows how to make the best chips in the world....

While diversification is good, the value in chip-making is the design not actually making it. Which the USA is already top dog on... This helps as a hedge against Taiwan issues... But not really a big win frankly...

We now have a glut of chips by the way..

 

[GuruZac]

Awesome news. Any bit of diversification is a win, however small.

 

[azentropy]

I’m happy to see this type of thing being built in the US, but is Phoenix really the best choice for this? Semiconductor manufacturing uses a lot of water, and Phoenix (and the entire Southwestern US) doesn’t exactly have a lot to spare given the mega-drought.

It is a good question. An article at azcentral (Arizona Republic) covers the pros and cons pretty well. Bottom line - While it does use a lot of water it has a state of the art wastewater treatment facility and heavily recycles and is much more efficient than many of the other water uses and provides a better bang for the buck compared to those uses.

Personally I'm more concerned with the White Claw and Red Bull facilities that have opened up (and are being expanded) that are a few miles away from my house. That is just nuts.

 

[MayaUser]

This is big for Apple...then for USA and others..no wonder is in Arizona

 

[InGen]

This factory will be a heavily guarded asset for years to come once operational, given its significance and it’s geopolitical implications.

It might also be the factor that leads the US to step away from it’s defence of Taiwan and allow China to retake the island and reintegrate it as part of China.

 

[ifxf]

Look at that, $12B of domestic chip plant investment that didn't need $52B in US government subsidies (handouts). And we sued Airbus/Europe for the same thing a few years ago.

TSMC built the plant assuming they get a taste of this subsidy.

 

[satcomer]

That plant will help Apple and low power chips in cars/trucks that were always in short supply!

 

[BootsWalking]

TSMC built the plant assuming they get a taste of this subsidy.

That's an absurd claim.

 

[JosephAW]

It’ll be interesting to see how they can come up with tens of thousands of engineers that will not want to unionize in the USA. I suppose they can just bring in thousands of foreign workers on visas.

 

[GMShadow]

I’m happy to see this type of thing being built in the US, but is Phoenix really the best choice for this? Semiconductor manufacturing uses a lot of water, and Phoenix (and the entire Southwestern US) doesn’t exactly have a lot to spare given the mega-drought.

Intel runs multiple fabs not too far from this.

 

[PBG4 Dude]

Good to see TSMC expand its operations in other geographic locales. This is an important step for both United States and the whole western world.

Due to threats against Taiwan 🇹🇼. Which we hope never eventuate.

Probably should do a quick search and find out this isn’t their first foray into US operations.

TSMC currently operates a fab in Camas, Washington, and US design centers in both Austin, Texas, and San Jose, California. The Arizona facility would be TSMC's second manufacturing site in the country.

 

[cwkoller5]

Smart for TSMC. Smart for Apple.

 

[spicynujac]

TSMC should accelerate their process to emigrate their key technologies out of Taiwan strait, eventually enabling the whole process (from design to manufacturing) to be completed elsewhere. Hopefully this new Arizona factory will be upgraded soon with the capability to fabricate more advanced chips. But able to fabricate 5nm is already a good start.

Why in the world would TAIWAN Semiconductor stop making chips in Taiwan?
Sounds like some ethnic or racial fearmongering to me.

Have you ever been to Taiwain? It's one of the most robust electronics manufacturing communities on the planet. They used to make 90% of LCD screens there and basically every computer motherboard. Computer hardware is a huge business for the Taiwanese and the cutting edge stuff is only found in one place -- Taiwan. Anyway, as long as the Taiwanese have this expertise they will manufacture in their own country, unless someone can beat them. So far, no dice.

The US plants will be doing some impressive work, but all the cutting edge stuff will be done by the TAIWANESE Semiconductor corporation in TAIWAN. Do I like that? I don't really have an opinion, because I don't judge people by their national origin or ethnicity.