Apple Chip Supplier TSMC Plans to Build Second $12 Billion Arizona Factory

[MacRumors]

Apple chip supplier TSMC plans to build another fabrication plant in Arizona alongside the $12 billion factory it has already committed to in Phoenix, reports The Wall Street Journal.

TSMC's topping-out ceremony for its first plant in Arizona​

The second plant will be located north of Phoenix and investment is expected to be roughly similar to the $12 billion the company committed to in 2020, according to people familiar with the plans who spoke to WSJ.

The original plant was originally expected to exclusively mass-produce 5nm chips, but it is now gearing up to also produce more advanced 4nm chips with larger capacity at the facility, according to WSJ's sources. The plant is expected to start mass production in 2024.

Meanwhile, the second plant is expected to manufacture cutting edge next-generation 3nm chips, a process that Apple is rumored to be moving its custom silicon to starting with the M2 Pro or M3 chip. Both Apple's M3 chip for Macs and A17 chip for iPhone 15 Pro models are expected to be manufactured based on TSMC's enhanced 3nm process. Bloomberg's Mark Gurman has said he expects the M2 Pro to be used in the 14-inch MacBook Pro, 16-inch MacBook Pro, and a high-end Mac mini.

The news about TSMC's unannounced plans follows attempts by the Biden administration to attract investments in U.S. chipmaking by offering companies billions in financial support to become established in the country. The efforts aim to counter China's tech sector ambitions and secure components considered vital to national security. The efforts were accelerated after the chip shortages in late 2020 and 2021 underlined how important semiconductors have become in the world of consumer electronics.

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 second Arizona facility will be its third manufacturing site in the United States.

Article Link: Apple Chip Supplier TSMC Plans to Build Second $12 Billion Arizona Factory

 

[MichaelQ]

Good on TSMC for not caving in to peer pressure and keeping their logo from 1983.

 

[Skyscraperfan]

Good on TSMC for not caving in to peer pressure and keeping their logo from 1983.

Haha, I must admit that I usually hate it when companies change their logos to look more modern. Most of them get rid of any 3D effects for example. I dont't see that as progress.

BMW’s new flat logo is everything that’s wrong with modern logo design

Introduced alongside the new i4 electric sedan concept.

www.theverge.com

 

[Shirasaki]

The sooner we can cut the reliance on China for iPhone production the better. Also yes, national security Heh…
(Yes the chip is produced in Taiwan but still)

 

[orbital~debris]

So this, and the Phoenix plant, are ways to diversify manufacturing and avoid dependency on Taiwan (a location under threat).

 

[Unggoy Murderer]

Haha, I must admit that I usually hate it when companies change their logos to look more modern. Most of them get rid of any 3D effects for example. I dont't see that as progress.

BMW’s new flat logo is everything that’s wrong with modern logo design

Introduced alongside the new i4 electric sedan concept.

www.theverge.com

They did it to align with how their cars are now: vapid.

 

[darngooddesign]

It's great for Arizona and great for US workers, but should we be building a second chip factory, which will require a lot of water to run, in a state suffering from historic drought? Hopefully they are also leaning into solar for its power requirements because the Hoover Dam's hydro output is already suffering as those water levels drop.

 

[falkon-engine]

3 nm built in the USA. Good. Good.

 

[anakin44011]

$12B sounds like a lot of money until you wonder how much of its capacity is already pre-sold. That, and the tax break, probably make it a no-brainer.

Provided they can get enough neon required to actually make the chips. I have read that:

Ukraine produces 90% of the semiconductor-grade neon used by the U.S.

Some 45%-54% of the world’s semiconductor grade neon, critical for the lasers used to make chips, comes from two Ukrainian companies, Ingas and Cryoin, both of which shuttered their operations earlier this year.

Not only has Ukraine fed many of its neighboring countries with its wheat production...now we have chip-grade neon on the other side of the spectrum. Globalized supply chains are as complicated as they are vulnerable. Let's hope TMSC (and Intel, for that matter), can get the raw materials they need to actually run those plants.

 

[ProfessionalFan]

Guy on the left has a hell of a beard. I like this deal just based on that

 

[dmr727]

Guy on the left has a hell of a beard. I like this deal just based on that

I was gonna say - that's ZZ Top level right there!

 

[tridley68]

Good. On them for building in the U.S. The sooner we cut China out of the picture the better we will be.

 

[Palliser]

It's great for Arizona and great for US workers, but should we be building a second chip factory, which will require a lot of water to run, in a state suffering from historic drought? Hopefully they are also leaning into solar for its power requirements because the Hoover Dam's hydro output is already suffering as those water levels drop.

Much of the water will be recycled.

https://www.azcentral.com/story/opi...emiconductor-intel-tsmc-water-use/6915685001/

 

[CarAnalogy]

Is it just me or do those “job well done” banners over a barely started construction site give anyone else “mission accomplished” vibes?

 

[CarAnalogy]

$12B sounds like a lot of money until you wonder how much of its capacity is already pre-sold. That, and the tax break, probably make it a no-brainer.

Provided they can get enough neon required to actually make the chips. I have read that:

Ukraine produces 90% of the semiconductor-grade neon used by the U.S.

Some 45%-54% of the world’s semiconductor grade neon, critical for the lasers used to make chips, comes from two Ukrainian companies, Ingas and Cryoin, both of which shuttered their operations earlier this year.

Not only has Ukraine fed many of its neighboring countries with its wheat production...now we have chip-grade neon on the other side of the spectrum. Globalized supply chains are as complicated as they are vulnerable. Let's hope TMSC (and Intel, for that matter), can get the raw materials they need to actually run those plants.

This is why China has been colonizing Africa.

 

[CarAnalogy]

Good on TSMC for not caving in to peer pressure and keeping their logo from 1983.

At this point it’s retro and therefore cool again. I actually do think it looks good.

 

[anakin44011]

This is why China has been colonizing Africa.

Yeah -- the cobalt situation is also pretty dire. But that's okay, no one needs cobalt because no one is betting billions (and billions and billions) of dollars on the electric car revolution.

"All in" sounds bold, but it is foolish if you can't control your inputs.

Most of my history "education" never covered WWII. When I finally learned why Japan "HAD TO" do what they did, it made me sick to my stomach (much of it was energy related). History may repeat itself.

 

[mimeArtist]

Literally 'The Wilford Brimley Line' (again)

 

[WWPD]

Good on TSMC for not caving in to peer pressure and keeping their logo from 1983.

Taiwan likes keeping it old school.

 

[cocky jeremy]

Well, that's good considering Taiwan probably won't exist a year or two from now. lol.

 

[IIGS User]

1: TSMC opening these cutting edge plants in North America is probably one of the best things to happen for US national security. Having the ability to produce high end microprocessors in North America is a pretty big deal.

2: Arizona was probably not chosen for it's proximity to natural or production resources, but for it's location with security being one of the key concerns. You build something like this in the proverbial middle of nowhere for a reason. Especially when what it makes on the other side of the world is on your potential future enemy's doorstep. Phoenix is close enough to the west coast to supply output to the Pacific rim, but far enough inland to not be easily threatened militarily. You can ship in raw materials by rail or truck if the need arises. Better to build the facility away from the coast and still have a facility to supply.

Good on TSMC for not caving in to peer pressure and keeping their logo from 1983.

Dude, the 80's were THE BEST logos. Period. This Lisa ad proves it. So grap a Tab and a 5.25 floppy!

 

[prizm]

Build in a desert about to run out of water. Reallly?

 

[I7guy]

It's great for Arizona and great for US workers, but should we be building a second chip factory, which will require a lot of water to run, in a state suffering from historic drought? Hopefully they are also leaning into solar for its power requirements because the Hoover Dam's hydro output is already suffering as those water levels drop.

Yep was already thinking this. I have a home in Az. and have been having second thoughts about keeping it due to the severe conditions.

 

[Just sayin...]

Another one??? Every time I drive past the first one (still under construction) near the I-17/I-303 NW corner, I’m blown away by how large it is. That thing is HUGE.

 

[Oilbrnr]

I don't know how much water the fab will use, but it will be a lot less over time than what the additional people moving here to support the plant will use. The LAST thing we need in AZ is more people.