According to reports, TSMC’s Arizona factory is scheduled to start mass production of the 4nm process by the second half of 2025, with customers such as Apple, NVIDIA, AMD, and Qualcomm being the main beneficiaries.
TSMC Arizona will provide semiconductor services to mainstream technology companies, but prices are likely to be significantly higher
The Taiwanese giant’s U.S. ambitions are finally starting to take effect as it prepares to begin production at its Arizona facility next year. From the enactment of the CHIPS Act to TSMC building one of its largest overseas facilities, the Taiwanese giant has made impressive progress. According to a report in Korean media Yonhap News, TSMC’s 4nm process is being produced at a facility in the Phase 1 (1A) factory area in Arizona, but production costs are expected to be 30% higher than in Taiwan. Something to consider for US customers.
The Arizona facility is expected to initially produce 20,000 wafers per month, with major customers including Apple, Nvidia, AMD and Qualcomm, according to the report. This facility is said to be responsible for 4nm production, but this is based on Phase 1 plans, as TSMC plans to mass produce 2nm in 2028 in Phase 2, but especially with the surrounding conflicts. All things considered, it’s a little uncertain at the moment. “Technology transfer” between the United States and Taiwan.
Another interesting point highlighted here is that production at TSMC’s Arizona facility is said to be much more costly to customers than sourcing directly from Taiwan. TSMC’s production costs in Arizona are approximately 30% higher, primarily due to a lack of materials in the U.S. to stabilize process yields and a shortage in the domestic semiconductor supply chain. It is claimed that there is.
Given that mainstream technology companies have started sourcing from TSMC Arizona, they may have to pay much higher amounts, which could ultimately be reflected in the prices of their consumer products. There is sex. TSMC will play a key role in the future of the U.S. semiconductor industry and how it develops under the Trump administration, which doesn’t seem to like the way TSMC operates domestically.
