Apple's Chipmaker TSMC Announces Plan to Build Arizona Factory

[MacRumors]

Apple's chipmaking partner TSMC today announced its intention to build and operate an advanced semiconductor factory in Arizona, with construction planned to start in 2021 and production targeted to begin in 2024.

The facility will be able to manufacture around 20,000 wafers per month using TSMC's latest 5-nanometer fabrication process. TSMC has been gradually miniaturizing its process over the years, going from a 16nm A10 chip in iPhone 7 models to a 7nm A13 chip in iPhone 11 models. iPhone 12 models are expected to use a 5nm A14 chip.

TSMC estimates that its total spending on this project, including capital expenditure, will be approximately $12 billion from 2021 to 2029, with the facility expected to create over 1,600 high-tech professional jobs directly.

TSMC already operates a factory in Camas, Washington and design centers in both Austin, Texas and San Jose, California, so the Arizona facility would be its second manufacturing site in the United States. The company's main factories are in Taiwan.

Article Link: Apple's Chipmaker TSMC Announces Plan to Build Arizona Factory

 

[FocusAndEarnIt]

Is it just me or does 20,000 chips per month seem pretty small?

edit: MR originally said chips and they’ve now corrected it to wafers.

 

[Brandon42]

Is it just me or does 20,000 chips per month seem pretty small?

I thought so as well. The original press release says wafers not chips.

 

[IG88]

Is it just me or does 20,000 chips per month seem pretty small?

I was thinking the same. But as noted above, TSMC's announcement says 20K wafers, not chips.

This facility, which will be built in Arizona, will utilize TSMC’s 5-nanometer technology for semiconductor wafer fabrication, have a 20,000 semiconductor wafer per month capacity,

 

[44267547]

Is it just me or does 20,000 chips per month seem pretty small?

The article indicates that they have other neighboring facilities In the U.S.(With the main source being in Taiwan) that manufacture chips also, this is just another addition to aid in manufacturing. I’m guessing the Arizona facility would probably alleviate some of the workload off the other facilities to make transitions to manufacture other iPhone SoCs/projects for the iPhone/iPad.

 

[Sasparilla]

Nice - although excellent catch by Focus and Brandon - its wafer's they're talking about (which have alot of chips on them).

 

[redgreenski]

Is it just me or does 20,000 chips per month seem pretty small?

I think the big picture is to slowly diversify where stuff is made. This maybe a test run.

 

[calzon65]

At least this is a start to seeing a more diversified supply chain with some manufacturing in the USA.

 

[jmgregory1]

This facility had better be able to produce more than 20k chips per month, otherwise I’d say the investment is not worth it. Even if they’re missing a zero in the number, making 200k units per month is such a paltry amount - what Apple product would that even support annually?

 

[magicschoolbus]

Important to have a chip factory in the USA.

 

[KPOM]

I thought so as well. The original press release says wafers not chips.

Assuming 20,000 wafers, does that suggest iPhone/iPad chip production levels or MacBook levels?

 

[I7guy]

Now there needs to be a factory to assemble the phones in North America.

 

[KPOM]

This facility had better be able to produce more than 20k chips per month, otherwise I’d say the investment is not worth it. Even if they’re missing a zero in the number, making 200k units per month is such a paltry amount - what Apple product would that even support annually?

I think it is supposed to be wafers, not chips. It wouldn’t make sense to spend $12 billion to make even 2.4 million chips per year.

 

[neilw]

If we assume 200 chips per wafer (that's a *really* rough guess, but likely correct to within an order of magnitude at least) than that's 4 million chips per month. Not enough for iPhones, but enough for Macs (and then some).

 

[KPOM]

Now there needs to be a factory to assemble the phones in North America.

Mexico, perhaps. They will likely be a long-term beneficiary of the coronavirus crisis as companies move to diversify supply chains. The Arizona location for the chips may be strategic.
[automerge]1589548283[/automerge]

If we assume 200 chips per wafer (that's a *really* rough guess, but likely correct to within an order of magnitude at least) than that's 4 million chips per month. Not enough for iPhones, but enough for Macbooks.

That sounds about right. Remember the MacBook CPUs would likely use multiple chips (main processor, graphics, T2-equivalent, etc).

 

[FlyBry]

This facility had better be able to produce more than 20k chips per month, otherwise I’d say the investment is not worth it. Even if they’re missing a zero in the number, making 200k units per month is such a paltry amount - what Apple product would that even support annually?

20K Wafers - not chips. Wafers and chips come in different sizes which affects yield.

Each 300mm wafer has around 14,500 chips. Maybe 70% will be usable.

CALY Technologies

caly-technologies.com

 

[neilw]

That sounds about right. Remember the MacBook CPUs would likely use multiple chips (main processor, graphics, T2-equivalent, etc).

I expect graphics will be integrated, for initial models. Tend to doubt if Apple will ever produce its own discrete GPUs (at least not for a while).

 

[pweicks]

Everyone on here talkin bout wafers... y’all got me hungry!

 

[B-Mc-C]

Given today’s news of China threatening to “restrict or investigate” Apple, they need to start construction like yesterday, not in 2021.

 

[Moakesy]

Manufacturing at 5 nanometers just blows my mind.
Don’t understand how in earth it’s done, but I love the fact it even exists.

 

[neilw]

20K Wafers - not chips. Wafers and chips come in different sizes which affects yield.

Each 300mm wafer has around 14,500 chips. Maybe 70% will be usable.

CALY Technologies

caly-technologies.com

14,500 per wafer is way high. Your earlier number of 500 was likely much closer to correct. My own 200 number was definitely low.

Apple A13 & Beyond: How Transistor Count And Costs Will Go Up

As the seminconductor industry moves forward to 5nm, we look briefly at how recent advantages will impact Apple and the iPhone.

wccftech.com

So assuming 500 per wafer, that's 10 million per month. Still not iPhone numbers, but more than enough for Mac chips plus maybe iPad Pro chips. Or some for other customers.

 

[robinp]

This article seems to be full of errors. Says 20,000 chips when by all accounts it is 20,000 wafers. Number of chips depend on size of chip and size of wafer.

It also says that apple's A series chips have been progressively getting smaller. The process has been, but the chip die has not.

See here: https://en.wikipedia.org/wiki/Apple-designed_processors

The smallest since A7 was A12 and the largest was A9X. If you ignore the X variants, the largest was the A9.

But the range, including the X variants, is 83mm2 to 144mm2. And for the non variant ones, 83mm2 to 104.5mm2. Not a huge variation. The great benefit of process shrinks is that you get more transistors into any given area.

 

[citysnaps]

Heads-up, it's waffles.

 

[neilw]

But the range, including the X variants, is 83mm2 to 144mm2. And for the non variant ones, 83mm2 to 104.5mm2. Not a huge variation. The great benefit of process shrinks is that you get more transistors into any given area.

I wouldn't be surprised if the Mac CPUs are somewhat larger, with more cores on both the CPU and GPU sides. iPhone CPUs will probably hold in the 100 mm^2 range, since that has worked very well for them up to this point.

Of course, the idea that this factory would produce Mac CPUs is just a wild guess, although not an unreasonable one.

 

[Joe Rossignol]

Is it just me or does 20,000 chips per month seem pretty small?

I thought so as well. The original press release says wafers not chips.

I was thinking the same. But as noted above, TSMC's announcement says 20K wafers, not chips.

This facility had better be able to produce more than 20k chips per month, otherwise I’d say the investment is not worth it. Even if they’re missing a zero in the number, making 200k units per month is such a paltry amount - what Apple product would that even support annually?

I think it is supposed to be wafers, not chips. It wouldn’t make sense to spend $12 billion to make even 2.4 million chips per year.

This article seems to be full of errors. Says 20,000 chips when by all accounts it is 20,000 wafers. Number of chips depend on size of chip and size of wafer.

It also says that apple's A series chips have been progressively getting smaller. The process has been, but the chip die has not.

See here: https://en.wikipedia.org/wiki/Apple-designed_processors

The smallest since A7 was A12 and the largest was A9X. If you ignore the X variants, the largest was the A9.

But the range, including the X variants, is 83mm2 to 144mm2. And for the non variant ones, 83mm2 to 104.5mm2. Not a huge variation. The great benefit of process shrinks is that you get more transistors into any given area.

My mistake. Honestly, I clearly don't know much about chipmaking, as I thought a wafer was synonymous with a single chip. I have updated the article! Thanks