TSMC in Arizona

Investment Analysis Clubs Macro Economic Trends and Risks
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TSMC has started producing chips at its Fab 21 near Phoenix, Arizona, using its 4nm-class process technology, Commerce Secretary Gina Raimondo told Reuters. This marks the first time such a cutting-edge production node has been manufactured in the United States. The confirmation from a high-ranking official comes months after the first unofficial information emerged that the fab was mass-producing chips for Apple.

DB2

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Sounds like Taiwan is loosening it’s grip on more advanced chips as well. The door has been opened to allowing 2nm chip production in the US.

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TSMC has said before that they plan to keep their most advanced technology in Taiwan. But investors worry about China and possible new tariffs, etc. Diversification is reassuring. One would hope the latest techniques could be moved to Arizona promptly if the need arises.

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DB2

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Interesting situation. Intel made mistakes in equipping its plants and in marketing its foundry services. TSMC could probably assist with marketing but re-equipping plants looks doubtful. You wonder how much difference this could make. But they are unlikely to do worse than Intel mgt.

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Hang on there Cochise. Is Trump talking about seizing Intel’s plants, and turning them over to a company he likes better? How big a check does he stand to pocket for this one?

Steve

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TSMC would likely hire away many Intel fab workers because the TSMC tech is cutting edge. Intel, NOT.

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Who owns the plants? Do companies have property rights now, or is it all about who buys favor from TIG? This isn’t the only instance I have heard of recently. Reportedly, a newly elected pol from Ohio is pushing to have the government force Stellantis to spin off the former Chrysler Corp units.

Steve

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Intel is behind TSMC, but not that far behind. The “latest” tech is EUV. According the ChapGPT here are lists of each TSMC and Intel FABs with and without EUV machines

Fab Location EUV Capability
D1X Hillsboro, Oregon, USA Yes
Fab 12 Chandler, Arizona, USA Yes
Fab 22 Chandler, Arizona, USA Yes
Fab 28 Kiryat Gat, Israel Yes
Fab 34 Leixlip, Ireland Yes
Fab 42 Chandler, Arizona, USA Yes
Fab 52 Chandler, Arizona, USA Yes (under construction)
Fab 62 Chandler, Arizona, USA Yes (under construction)
Fab 11X Rio Rancho, New Mexico, USA No
Fab 24 Leixlip, Ireland No
Fab 32 Chandler, Arizona, USA No
Fab 38 Kiryat Gat, Israel No
Fab 27 Licking County, Ohio, USA No (under construction)
SC2 Santa Clara, California, USA No
Pelican Penang, Malaysia No (under construction)
Fab 29 Magdeburg, Germany No (under construction)

Intel’s EUV capabilities are primarily concentrated in their advanced fabs in the USA, Israel, and Ireland

TSMC FABs

Fab Location EUV Capability
Fab 12 Hsinchu, Taiwan Yes
Fab 14 Tainan, Taiwan Yes
Fab 15 Taichung, Taiwan Yes
Fab 18 Tainan, Taiwan Yes
Fab 16 Nanjing, China No
TSMC Arizona Phoenix, USA Yes (under construction)
Fab 3 Hsinchu, Taiwan No
Fab 5 Hsinchu, Taiwan No
Fab 6 Tainan, Taiwan No
Fab 8 Hsinchu, Taiwan No
Fab 10 Shanghai, China No
Fab 11 Camas, USA No
Fab 2 Hsinchu, Taiwan No
Advanced Backend Fab 1 Hsinchu, Taiwan No
Advanced Backend Fab 2 Tainan, Taiwan No
Advanced Backend Fab 3 Taoyuan, Taiwan No

Summary:

  • TSMC has 5 fabs with EUV out of a total of 16.
  • Intel has 8 fabs with EUV out of a total of 15.

Intel is at least 2 years behind in the best process node (highest density)

Mike

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If EUV is not required for many of the chips produced by TSMC, then it is no big deal. Remember: TSMC is a contract manufacturer whereas Intel mostly does its own chip fabrication.

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False flag

I think in 2022 Taiwan Semi gave up some IP for Intel to work on 1.8 nm. In return some of the Chips act goes to TSM. Now this admin wants credit for things.

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Intel’s 1.8 nm (18A) process is expected to enter mass production in mid-2025. However, some reports indicate that the process isn’t ready for high-volume production yet.

What’s the status?

  • Intel has sampled 18A-based products with customers.
  • Intel has reported that it has a dozen customers using its 18A tool kit.
  • Microsoft has contracted Intel for $15 billion to use the 18A process.
  • Broadcom has tested Intel’s 18A node on its internal designs, but found that it’s not ready for high-volume production.

What’s the plan?

  • Intel’s 18A process is intended to help Intel regain technology leadership.
  • Intel’s 14A process is planned to begin production around 2027.

What’s the competition?

  • TSMC’s N2 node is slated for high-volume manufacturing in late 2025.
  • Samsung’s SF2 is expected to enter high-volume manufacturing in 2025.