TSMC (TSM) Set to Open First Arizona Chip Plant for Advanced 4nm Production

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Nov 04, 2024
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TSMC (TSM, Financial) is preparing to celebrate the completion of its first semiconductor plant in Arizona, USA. This facility, the first of its kind for TSMC's advanced production processes outside of Taiwan, will hold its completion ceremony in early December. The plant took four years to construct and will soon start producing 4-nanometer chips.

Operations at the Arizona plant align with recent events in U.S. politics, as TSMC founder Morris Chang has urged the management team to be thoroughly prepared for the future. The Arizona plant, designed as an ultra-large-scale facility, began trial production in September using the 4nm process. Apple's involvement as the first customer signifies the plant's strategic importance.

The plant's main hall features models of six planned factories, indicating TSMC's ambitions to expand beyond the already announced three plants. The Arizona site covers approximately 445 hectares. Originally, the first-phase production of 4nm chips was expected this year but has been postponed to the first quarter of next year. Moreover, the second phase, initially scheduled for 2026 with 3nm production, has been delayed to 2028. The third plant is set to focus on 2nm or even more advanced A16 processes, aiming for mass production by 2030.

TSMC is rigorously preparing for the plant's inauguration ceremony, although the official name for the event has not yet been decided. It is anticipated that the theme of the ceremony will revolve around the "official production of the first batch of wafers," following a similar event in December 2022 when the first machines were installed.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.