Apple Chip Supplier TSMC Plans to Build Second $12 Billion Arizona Factory

Apple chip supplier TSMC plans to build another fabrication plant in Arizona alongside the $12 billion factory it has already committed to in Phoenix, reports The Wall Street Journal.

tsmc arizona

TSMC's topping-out ceremony for its first plant in Arizona

The second plant will be located north of Phoenix and investment is expected to be roughly similar to the $12 billion the company committed to in 2020, according to people familiar with the plans who spoke to WSJ.

The original plant was originally expected to exclusively mass-produce 5nm chips, but it is now gearing up to also produce more advanced 4nm chips with larger capacity at the facility, according to WSJ's sources. The plant is expected to start mass production in 2024.

Meanwhile, the second plant is expected to manufacture cutting edge next-generation 3nm chips, a process that Apple is rumored to be moving its custom silicon to starting with the M2 Pro or M3 chip. Both Apple's M3 chip for Macs and A17 chip for iPhone 15 Pro models are expected to be manufactured based on TSMC's enhanced 3nm process. Bloomberg's Mark Gurman has said he expects the M2 Pro to be used in the 14-inch MacBook Pro, 16-inch MacBook Pro, and a high-end Mac mini.

The news about TSMC's unannounced plans follows attempts by the Biden administration to attract investments in U.S. chipmaking by offering companies billions in financial support to become established in the country. The efforts aim to counter China's tech sector ambitions and secure components considered vital to national security. The efforts were accelerated after the chip shortages in late 2020 and 2021 underlined how important semiconductors have become in the world of consumer electronics.

TSMC's main factories are located in Taiwan, but it already operates a factory in Camas, Washington, as well as design centers in Austin, Texas and San Jose, California, meaning that the second Arizona facility will be its third manufacturing site in the United States.

Top Rated Comments

MichaelQ Avatar
12 weeks ago
Good on TSMC for not caving in to peer pressure and keeping their logo from 1983.
Score: 31 Votes (Like | Disagree)
Shirasaki Avatar
12 weeks ago
The sooner we can cut the reliance on China for iPhone production the better. Also yes, national security Heh…
(Yes the chip is produced in Taiwan but still)
Score: 25 Votes (Like | Disagree)
darngooddesign Avatar
12 weeks ago
It's great for Arizona and great for US workers, but should we be building a second chip factory, which will require a lot of water to run, in a state suffering from historic drought? Hopefully they are also leaning into solar for its power requirements because the Hoover Dam's hydro output is already suffering as those water levels drop.
Score: 24 Votes (Like | Disagree)
ProfessionalFan Avatar
12 weeks ago
Guy on the left has a hell of a beard. I like this deal just based on that
Score: 13 Votes (Like | Disagree)
anakin44011 Avatar
12 weeks ago
$12B sounds like a lot of money until you wonder how much of its capacity is already pre-sold. That, and the tax break, probably make it a no-brainer.

Provided they can get enough neon required to actually make the chips. I have read that:

:( Ukraine produces 90% of the semiconductor-grade neon used by the U.S.

:( Some 45%-54% of the world’s semiconductor grade neon, critical for the lasers used to make chips, comes from two Ukrainian companies, Ingas and Cryoin, both of which shuttered their operations earlier this year.

Not only has Ukraine fed many of its neighboring countries with its wheat production...now we have chip-grade neon on the other side of the spectrum. Globalized supply chains are as complicated as they are vulnerable. Let's hope TMSC (and Intel, for that matter), can get the raw materials they need to actually run those plants.
Score: 9 Votes (Like | Disagree)
orbital~debris Avatar
12 weeks ago
So this, and the Phoenix plant, are ways to diversify manufacturing and avoid dependency on Taiwan (a location under threat).
Score: 9 Votes (Like | Disagree)

Popular Stories

dewey airtag

Report Highlights Danger of Using AirTags for Tracking Dogs

Monday January 30, 2023 1:45 pm PST by
AirTags may be a convenient way for tracking dogs that might get off leash or otherwise lost, but there are dangers associated with the practice, as outlined by a report from The Wall Street Journal. At 1.26 inches in diameter, AirTags are able to fit easily on a dog's collar, but that size also makes the tracking devices small enough to swallow, at least for a medium to large-sized dog, and ...
General iOS 16 Feature Yellow

Five New iOS Features Coming to Your iPhone Later This Year

Tuesday January 31, 2023 11:58 am PST by
Apple has previously announced several upcoming iOS features that are expected to be added to the iPhone this year. Some of the features could be introduced with iOS 16.4, which should enter beta testing soon, while others will arrive later in the year. Below, we have recapped five new iOS features that are expected to launch in 2023, such as an Apple Pay Later financing option for purchases ...
Apple Silicon Teal Feature

The Next Big Apple Silicon Device May Not Be a Mac or iPad

Wednesday February 1, 2023 3:57 am PST by
Apple's next device with an Apple silicon chip may not be a Mac or an iPad, but rather an advanced external display, according to recent reports. The display, which is rumored to arrive this year, is expected to sit somewhere between the $1,599 Studio Display and the $4,999 Pro Display XDR – but more exact information about the device's positioning and price point is as yet unknown. While ...
Multi Display CarPlay 1

Apple Launching All-New CarPlay Experience Later This Year With These 5 Features

Sunday January 29, 2023 10:15 am PST by
In June 2022, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple says the first vehicles with support for the next-generation CarPlay experience will be announced in late 2023, with committed automakers including Acura, Audi,...
MKBHD HomePod 2 White Ring Stain

New HomePod Can Still Stain Some Wooden Surfaces

Tuesday January 31, 2023 8:29 am PST by
When the original HomePod launched in 2018, it was discovered that the speaker can leave white rings on some wooden surfaces. Now, well-known YouTuber Marques Brownlee has confirmed that the issue persists to a lesser extent with the new HomePod. In a side-by-side test, he showed that the white second-generation HomePod left a white ring on the wooden surface that he placed the speaker on,...
HomePod 2 White and Midnight Feature Purple Blue

Apple Explains Why HomePod Was Released Again, Wi-Fi 4 Limitation, and More

Thursday February 2, 2023 7:57 am PST by
Apple's VP of hardware engineering Matthew Costello and product marketing employee Alice Chan recently spoke with Men's Journal and TechCrunch about the new second-generation HomePod in wide-ranging interviews about the smart speaker. Apple discontinued the original full-size HomePod in March 2021 after multiple reports indicated that sales of the speaker were lackluster, but Chan told Men's ...