TSMC Makes History with Launch of Cutting-Edge 4-Nanometer Chip Production in Arizona

Recently, Taiwan Semiconductor Manufacturing Company (TSMC) has commenced the production of cutting-edge 4-nanometer chips at its Arizona facility. This marks a significant milestone as it brings this level of semiconductor manufacturing to U.S. soil for the first time, aiming to match the production capacity and quality standards set in Taiwan.

U.S. Commerce Secretary Gina Raimondo highlighted the historic nature of this achievement, emphasizing the groundbreaking aspect of producing such advanced technology domestically. She noted that many initially believed this accomplishment to be unachievable, yet it has now become a reality.

The production of 4-nanometer chips is part of a broader strategy by the U.S. government to revitalize its semiconductor industry. President Biden's administration passed a $52.7 billion incentive package in 2022 to boost semiconductor manufacturing and research efforts, persuading major companies, including TSMC, to establish fabrication plants within the United States.

TSMC's current operations include two wafer fabrication plants situated in Arizona. The company agreed in April 2024 to elevate its investment to $65 billion, with intentions to establish a third fabrication plant in the state by 2030. The U.S. Department of Commerce has sanctioned a grant of $6.6 billion to TSMC’s U.S. subsidiary to aid in construction, alongside offering low-interest loans up to $5 billion to support the endeavor.

Looking ahead, TSMC has projected that its first Arizona plant will achieve mass production by the first half of 2025. Furthermore, plans are in place for the second plant to manufacture the most advanced 2-nanometer chips by 2028. TSMC has also committed to utilizing state-of-the-art "A16 chip" manufacturing technology at these facilities.