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TSMC to increase investment in Arizona from $12 billion to $40 billion, build second fabrication plant in the state

The first Arizona-based TSMC fabrication plant won’t open its doors until 2024, and the company has already committed to building a second plant for $40 billion.

TSMC originally committed $12 billion to build an Arizona-based semiconductor fabrication plant in 2020, which was already a record investment for the company outside of Taiwan. After delays related to COVID 19 and labor shortages, TSMC expects to begin manufacturing on schedule in early 2024.

Per a December 6 update from the company, the first Arizona plant would begin production of N4 process technology in 2024 while also starting construction of a second fab. The second fab would focus on production of 3nm process technology in 2026.

TSMC has allegedly been planning to build up to six total fabs by 2024, and this marks the first official announcement from the company about expanding beyond a single fab. An increase from one fab to two would increase the expected total wafer output to 600,000 per year.

The creation of the two fabs is expected to bring 10,000 high-paying tech jobs, including 4,500 direct TSMC jobs.

TSMC and Apple have a symbiotic relationship where both companies are highly invested in the other’s success. Apple’s custom processors like the M1 and M2 are fabricated by TSMC, and development is performed in close collaboration.

Apple CEO Tim Cook has confirmed that the new Arizona plants will provide at least some of Apple’s chip supply.

Stay tuned for additional details as they become available.

Via AppleInsider