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Chipmaker TSMC may be planning to build more chip factories in Arizona

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(Reuters) — Taiwan Semiconductor Manufacturing Co (TSMC) is planning to build a complete lot of more chipmaking factories within the U.S. assert of Arizona beyond the one currently planned, three folk unsleeping of the matter suggested Reuters.

TSMC, the realm’s greatest contract chipmaker, supplied in Might perchance perchance well also merely 2020 it will probably perchance well perchance build a $12 billion manufacturing facility in Arizona, an apparent utilize by the Trump administration in its push to struggle world tech provide chains encourage from China.

TSMC is constructing a 12-inch wafer fabrication plant in Phoenix, and the ability is anticipated to open volume manufacturing in 2024, Taiwan’s investment commission of the ministry of business affairs, which licensed the investment, said in December.

TSMC manufactures the majority of its chips in Taiwan and has older chip services in China and the U.S. assert of Washington.

Three sources unsleeping of the matter, talking on situation of anonymity as they had been now not current to keep in touch to the media, suggested Reuters that up to 5 extra fabs for Arizona are being planned.

The preliminary fab is comparatively modest by trade requirements, with a planned output of 20,000 wafers — each of which comprises thousands of chips — every month the spend of the company’s most refined 5 nanometre semiconductor manufacturing skills.

It’s now not clear how worthy extra manufacturing ability and investment the extra fabs would possibly possibly well signify, and which chip manufacturing skills they’d spend.

TSMC closing month said it planned to invest $100 billion over the next three years to supply bigger manufacturing ability, even when it did now not give minute print.

One person with voice details of the matter suggested Reuters the growth was based completely completely on a are expecting of from the U.S., but declined to offer additional minute print.

“The US requested it. Internally TSMC is planning to elevate to six fabs,” the person said, including that it was now impossible to give a timeframe.

The Biden administration is getting willing to spend tens of billions of dollars to strengthen home chip manufacturing. Under present legislation, distant places companies are eligible for these funds, but whether or not they are going to finally receive it’s an start ask.

A second person unsleeping of the plans said the company had already made certain there was ample residence for growth when they purchased the land for the first plant.

“It’s so that they’ll build six fabs,” the source said.

The third person, from a TSMC dealer concerned concerning the Arizona challenge, said TSMC had suggested them the conception was to build a complete of six fabs over the next three years.

Reuters was now not ready to independently verify the timeframe.

TSMC referred to comments by CEO C.C. Wei on an earnings name closing month, announcing the company was starting chip manufacturing in Arizona in 2024 with a 20,000 wafer per month 5-nanometer skills.

“Nevertheless in fact, now we have obtained a spacious share of land in Arizona to offer flexibility. So additional growth is possible, but we can ramp up to Piece 1 first, then based completely completely on the operation effectivity and price economics and furthermore the possibilities’ are expecting of, to settle what the next steps we are going to establish.” Requested whether the planned growth was thanks to a are expecting of from the United States, TSMC said it was “now not certain” what was supposed by “requests” coming from the U.S. aspect and that this is in a position to perchance well settle next steps based completely completely on operational effectivity, price economics and customer are expecting of.

“Once there is any legit resolution, we can affirm it accordingly.”

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