A major Apple supplier, chip fabricator Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker, is preparing another multibillion-dollar factory investment in Arizona, this time for a very advanced facility, The Wall Street Journal reports Wednesday citing “people familiar with the plans.”
Asa Fitch and Yang Jie for The Wall Street Journal:
TSMC plans in the coming months to announce it will build a cutting-edge semiconductor plant north of Phoenix, beside another chip factory that the company committed to in 2020, according to people familiar with the expansion plans. The scale of the investment is expected to be roughly similar to the $12 billion it committed two years ago, the people said.
TSMC’s new facility would manufacture so-called 3-nanometer transistors, some of the tiniest and most lightning-fast currently possible, the people said.
TSMC said in a statement to The Wall Street Journal Wednesday that it is constructing a building to potentially serve as a second fab at its site in Arizona. It will consider adding more advanced chip capacity there, though it hasn’t made a final decision, the statement said.
Despite the near-term industry gloom, chip executives still expect global sales to about double to over $1 trillion a year in the next decade, underpinning huge investments in manufacturing capacity. Their spending plans are also being helped by factory-building incentives in both the U.S. and Europe, which hope to shift the industry’s center of gravity away from Asia.
MacDailyNews Take: Reducing the concentration of advanced semiconductor fabrication in TSMC’s homeland of Taiwan, which is constantly under the threat of CCP-controlled China, spreading advanced chip fabs to other countries, thereby reducing risk and eliminating potential supply bottlenecks, is an absolute necessity.
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