TSMC on Thursday. Co talked about some of its expansion plans outside of Taiwan. The company said it has begun preparations to build a fab in Japan and outlined plans to expand its production capacity in China. The company also announced that its fab in Arizona will begin mass production of chips as early as the first quarter of 2024. At the same time, TSMC officially confirmed that it is considering expanding its manufacturing capacity in Arizona.According to reports Nikkei Asia.
In TSMC’s earnings conference call, TSMC Chairman Mark Liu talked about the need to expand its manufacturing footprint to enhance TSMC’s competitiveness. This will serve customers better.
Arizona plant: expected to be achieved in the first quarter of 2024
TSMC has been exclusively using advanced manufacturing processes to produce all of its chips in Taiwan for many years. Last year it announced plans to build a Arizona State’s $12 billion N5/N5P/N5A (5nm) fab And construction will begin in the near future. This move will significantly improve TSMC’s position among customers in the United States who are more willing to produce chips in the United States (that is, customers serving government and military agencies), and will enable TSMC to diversify its manufacturing base.
The fab will begin mass production of chips in the first quarter of 2024. Its initial manufacturing capacity is about 20,000 300mm wafers per month. According to TSMC’s standards, this is a fairly small fab.But even before construction started, unofficial sources started show TSMC is considering building more wafer fab modules to expand the capacity of its manufacturing operations in the United States
In a conference call with financial analysts and investors, the company officially confirmed that it is considering expanding its Arizona production capacity, but did not elaborate.
A professional factory in Japan: initiates due diligence procedures
As many industries now rely heavily on chips, the Japanese authorities earlier this year Proposal for Sony Group and TSMC Establish a fab in Japan to ensure a stable supply of semiconductors for local automakers and other companies. TSMC has established R&D facilities in Japan. Furthermore, there are many chip developers in Japan, so this proposal makes sense.
This week TSMC confirmed that it is conducting due diligence on a professional wafer fab in Japan. The company is evaluating the needs of its customers (such as Sony, NXP, Renesas, etc.), set-up costs, and operational efficiency. So far, no decision has been made, and the fab is not part of TSMC’s $100 billion capital expenditure in the next few years.
China Fab 16: expected to achieve 60% expansion
TSMC operates a relatively small Fab 16 in Nanjing, China, serving local customers, including those in the automotive industry. The fab uses TSMC’s various 28-nanometer process technologies and thicker nodes to process wafers, but because the demand for all chips is high, it makes sense to expand the production capacity of the manufacturing facility.
During the conference call, TSMC reiterated its plan to spend US$2.8 billion to expand its No. 16 fab. The foundry plans to increase the output of the fab to 40,000 wafers per month by mid-2023, or an increase of 60%, to meet the “emergency needs” of its customers.
TSMC’s overseas expansion plan is quite large. The fabs in the United States and China have been included in their capital expenditure budgets, so if nothing else, they will be built. However, it remains to be seen whether the company will continue its program of specialized wafer fabs in Japan.
At the same time, Taiwan is still TSMC’s manufacturing base because the company will maintain its leading technologies such as N4 and N3 in the country for the foreseeable future.