TSMC’s new 5-nanometer plant settles in Arizona with estimated expenditure of US $ 12 billion

TSMC’s new 5-nanometer plant settles in Arizona with estimated expenditure of US $ 12 billion
On May 15, TSMC (TWSE: 2330, NYSE: TSM) announced that with the support of the US federal government and Arizona, the company intends to establish and operate an advanced semiconductor fab in the United States.Air Force Intelligence Chief Executive Officer Bob Swan sent a letter to the U.S. Department of Defense in late April indicating his willingness to jointly build a factory.According to a document on TSMC’s official website, the factory will be built in Arizona and will use TSMC’s 5-nanometer technology to produce semiconductor wafers with a monthly capacity of 20,000 wafers. It will directly provide more than 1,600 high-tech technical positions and create multiple individual positions.This will be TSMC’s second manufacturing base in the United States.According to TSMC’s official website, the factory is scheduled to start construction in 2021 and start production in 2024.From 2021 to 2029, TSMC’s total expenditure (including capital expenditure) on this project will reach about 12 billion US dollars.TSMC said it will be able to support its customers and partners, and therefore attract global talent.TSMC currently has a desktop fab in Camas, Washington, USA, and design centers in Austin, Texas, and San Jose, California.On May 14th, US time, the US Department of Commerce’s official website published an article saying that the minister, Wilbur Ross, acknowledged the establishment of the TSMC plant and indicated that this was promoted by President Donald’s US manufacturing recovery policy.This plan is the result of years of extensive cooperation between TSMC, the governor of Arizona and his staff and the government, especially Ian Steff, assistant minister of commerce.The US Department of Commerce article said that the growth of the semiconductor industry in the US economy has supported many advanced technologies that consumers rely on, including smartphones, traffic safety applications, advanced medical equipment and telecommunications.TSMC’s investment will strengthen the US leadership in cutting-edge semiconductor design and manufacturing, and gradually accelerate Arizona’s rise as a global technology industry center.According to public information, Arizona is located in the southwestern United States and is the sixth continent in the United States. The state capital is Phoenix (also literally translated as Phoenix).The local area is famous for its desert climate, with hot summers and mild winters. The Seven Wonders of the World, Grand Canyon National Park, is located in the state, and a quarter of the state is reserved for Indians.Arizona has long been a hub for advanced manufacturing and the semiconductor industry, with skilled trucks and a strong supply chain.Supported by business policies, companies such as Intel and Motorola have achieved tremendous growth in the state, and continue to attract companies in Silicon Valley and New York, such as Uber, to establish offices in Phoenix, while their data center resources are rich and have attracted aerospace, Enterprises in the fields of electric vehicles and the Internet of Things.It is reported that the site selection of the TSMC plant is still under evaluation, and the Arizona Department of Commerce is involved in this work.In addition, foreign media quoted people familiar with the matter as saying that Apple also participated in discussions on building chip factories.In addition to TSMC, Intel ‘s SmartBridge also wrote to the two US Department of Defense officials Lisa Porter and Nicloe Petta on April 28, expressing their willingness to cooperate with the Department of Defense to build a commercial chip foundry for the supply of a wide range of microelectronic products, andThis is in the best interest of the United States and Intel.Siribo also stated that it will be ready to expand manufacturing, technology and hydraulics in the United States.At present, even the United States has dozens of semiconductor factories, but only Intel has the ability to manufacture chips of 10 nanometers and below.However, the core is mainly for its own product production.Among OEMs, only TSMC and Samsung Electronics have similar capabilities.Samsung Electronics has a chip factory in Austin, Texas.Another foundry GF, which works closely with the US Department of Defense, announced in 2018 that it would stop developing advanced chips.However, recent foreign media quoted the company as Laurie Kelly said that the company is ready to cooperate with the chip industry and the US government.According to Qualcomm, Nvidia, Broadcom, Xilinx, AMD and other semiconductor companies all need to rely on TSMC to manufacture chips.Obviously, according to TSMC’s 2019 annual report, Intel also produces some chips through TSMC.However, there are also different views on the establishment of TSMC in the United States.Some analysts pointed out that the cost of building a factory in the United States is high, and whether the production is in line with economies of scale, and the time point of return on large investments will become the test of building a factory.The entire complete semiconductor industry chain means that transportation costs and labor costs need to be increased.Sauna, night net editor Liang Chen Xu Chao proofreading Liu Baoqing