Home » News » Taiwan Based TSMC is Making a $12 billion Chip Plant in Arizona

Taiwan Based TSMC is Making a $12 billion Chip Plant in Arizona

Taiwan based TSMC is making a $12 billion chip plant in Arizona

Taiwan Semiconductor Manufacturing Company, better known as the TSMC, is all set to build its mega project in the United States. The company will be erecting its semiconductor chip manufacturing plant in Arizona state. The TSMC which is popular for making chips used in both NVIDIA and AMD GPUs. The construction will start in the year 2021, while the production is expected to commence in 2024.

The big firm reportedly decided to have a large capacity of building about 20,000 silicon wafers every month. It is a win-win situation for both the company and the state. As per expectations, all the building work will be subsidized by the United States government, and the manufacturing plant will be able to generate a good number of 1,600 jobs in the high paying bracket.

The only downside and also the bone of contention is largely the huge cost of pulling off such a plan. The construction is going to be very demanding financially, and a lot of working capital will have to be fed. The United States has been a very forward-looking nation when it comes to state investments and the government, not just needs, but is hoped to play a crucial role in the success of this project.

TSMC is a top-class contract manufacturer for a number of fabless chips that are used voluminously in Apple’s devices; for instance, Apple’s A13 processor for its latest pool of iPhones and iPads. TSMC is the name when it comes to extending the much-needed groundwork in Qualcomm processors. These processors, as we all know, are the life and soul of the Android devices.

The Taiwanese company has estimated the total cost of constructing the big firm to be $ 12 billion. AMD and many other brands will be a home production to the happiness of the state and Apple. The name and fame of TSMC can be attributed to the fact that many brands, including Intel, have their enormous plants and reach out to it without a second thought. 

Therefore it is no doubt that a sizeable chunk of their massive production is entrusted to the TSMC. Very few companies can compete with TSMC in its innovation. Lately, Samsung can be counted as a rival, but its operation is limited to specific areas such as the memory, unlike TSMC.

Therefore, the big brands that make their chips and have their self-established and thriving markets like Intel and Texas Instruments also do take this path of outsourcing some of their load. And lastly, the latest 5-nm manufacturing technology in the field of semiconductor chips has been pioneered by this company alone. 

It is certainly a very risky business, but the Taiwanese firm nevertheless ventured to associate their manpower with this ambitious vision. The company expects all help from the government in the form of heavy subsidies since setting up a plant in the US is much higher than that in Taiwan, their home country.

The post corona pandemic conditions in countries are going to differ as far as the economic sphere is considered. The United States is no different, and it knows the same. Thus, all the stakeholders are hopeful that the construction of the plant will result in the US always leading many steps ahead in cutting edge semiconductor technology, both in the spheres of production as well as in operations while creating jobs.

Image source: Engadget

Leave a Comment

Your email address will not be published. Required fields are marked *