tsmc starts 4nm chip production in arizona
Phoenix, Monday, 13 January 2025.
The U.S. is witnessing a historic moment as TSMC begins the production of 4nm chips at its Arizona facility. This marks the first time such advanced semiconductor technology is being produced on American soil. U.S. Commerce Secretary Gina Raimondo confirmed the news, emphasizing the achievement’s significance for domestic semiconductor capabilities. The Arizona plant’s production yields and quality reportedly match those of Taiwan’s, showcasing the potential for the U.S. to become a significant player in the global semiconductor industry. With a target to produce 20% of the world’s advanced chips by 2030, this development aligns with the Biden administration’s strategic push to strengthen local manufacturing. TSMC’s project involves substantial investment, supported by the CHIPS and Science Act, aiming for further expansion into 2nm and 3nm technologies in the coming years. This milestone is seen as a pivotal step in reshaping the semiconductor landscape in the United States.
Historic production launch
TSMC has initiated production of 4nm chips at its Arizona facility, marking a groundbreaking development in U.S. semiconductor manufacturing [1][2]. Commerce Secretary Gina Raimondo announced that the production began in recent weeks, confirming the facility’s output quality and yield rates match those of TSMC’s Taiwan operations [1][3]. This achievement represents the first time advanced 4nm chips are being manufactured on American soil [2][3].
Investment and expansion plans
The project is backed by $6.6 billion in federal grants and up to $5 billion in loan guarantees under the CHIPS Act [2][3]. TSMC has committed to a total investment of $65 billion in Arizona [2], with plans to construct three fabrication facilities by 2030 [4]. The company’s second fab will begin producing 2nm chips in 2028 [1][3], showcasing TSMC’s long-term commitment to U.S. manufacturing.
Market implications and capacity
The Arizona facility’s initial production capacity is reported at 10,000 wafer starts per month [2]. TSMC’s stock performance has been remarkable, with an 88% increase in 2024, making it the first non-U.S. tech company to reach a $1 trillion market value [5]. The facility’s production includes advanced chips for U.S. customers [1], supporting the Biden administration’s goal of manufacturing 20% of global advanced logic chips by 2030 [2][3].