Plans for TSMC’s chip facilities in Arizona have encountered some obstacles, yet the firm asserts that its second plant might start producing 2nm chips as soon as 2028. Earlier announcements only projected the production of 3nm chips by that time.
Nonetheless, officials from Taiwan have indicated that the start of 2nm chip manufacturing in Arizona may be postponed until 2029 or 2030.
Arizona Chip Plants: A Current Overview
The news of TSMC establishing a chip fabrication plant in Arizona was celebrated as a significant win for the US CHIPS Act, aimed at reducing American reliance on China for advanced chip supplies while providing job opportunities for local workers. Apple announced its intention to procure American-made chips for certain devices.
However, the initial excitement diminished quickly. The facility will primarily manufacture larger process chips that are only compatible with older Apple devices, and soon after, TSMC sought increased subsidies and relaxed regulations.
Delays and budget overruns have plagued the project, now projected to commence production in 2025 instead of 2024. There are also concerns that the cost of US-made chips could exceed those produced in Taiwan, which may lead Apple to reduce its purchases.
Initially, the promised US job growth came into question when TSMC opted to import approximately 500 workers from Taiwan to expedite construction. This decision sparked significant backlash, with US employees filing a discrimination lawsuit as nearly half of the workers were imported from abroad.
2nm Chip Manufacturing in the United States
TSMC typically reserves its most advanced chip fabrication operations for Taiwan, with the US facilities expected to focus on larger-process chips intended for older devices.
The strategy is for the plants in Arizona to lag behind Taiwan by three to five years, potentially making 2nm chips by 2028. Apple is believed to be aiming to implement 2nm chips in its iPhone 17, although the feasibility of this remains uncertain.
TrendForce has reported that TSMC has communicated its more ambitious objectives to the US government, though the Taiwanese government acknowledges that there may be setbacks.
Data provided by TSMC to the U.S. Department of Commerce suggests that production with the 2nm process could commence in the U.S. by 2028.
TSMC’s initiative to produce 2nm chips in the United States has garnered considerable interest. Wu Cheng-Wen, Taiwan’s National Science and Technology Council minister, recently remarked that while 2028 seems likely, delays to 2029 or 2030 are possible.
The US has allocated up to $6.6 billion in CHIPS Act funding to assist TSMC’s construction efforts in Arizona, with the first plant expected to begin 4nm chip production for older Apple devices in the first half of the upcoming year. The second plant is the one anticipated to manufacture 2nm chips.
Photo by Mason Field on Unsplash
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