TSMC's Arizona Plant Boosts US Chip Dreams Amid Price Hikes and Soaring Demand
1min read As of last week, TSMC (TSM) saw an increase of 2.78%, with a weekly rise of 1.32% and an impressive year-to-date growth of 98.91%, bringing its latest market value to $1,055.187 billion.
Recent reports indicate that TSMC plans to raise its chip manufacturing prices for its 5nm, 4nm, and 3nm process nodes, with an expected increase of about 4% beyond previous forecasts. Orders related to AI and HPC are projected to have a price rise of 8% to 10%. Analysts suggest this unexpected price adjustment signals a sustained demand across the global semiconductor supply chain.
TSMC's first U.S. chip plant in Arizona has achieved significant progress in early chip production. Reports indicate the chip yield rate at this facility is approximately 4% higher than similar plants in Taiwan. Chip yield measures the percentage of usable chips produced and is crucial for determining the economic efficiency of manufacturing processes.
This advancement marks a historical milestone in the U.S. government's efforts to bolster domestic chip production. TSMC, a key partner for tech giants like Nvidia, AMD, and Apple, plays a crucial role in the U.S. technology sector's chip supply.
Supported by the U.S. CHIPS Act, TSMC's American facilities could receive up to $6.6 billion in subsidies, $5 billion in special loans, and a 25% tax credit. However, these incentives are still subject to further government review and approval.
TSMC's first Arizona plant is on track to start mass production by early 2025. The CEO expressed confidence in matching the manufacturing processes and reliability of their Taiwanese facilities.
Despite construction challenges, including labor issues, TSMC is looking at expanding its U.S. operations, potentially driven by further U.S. governmental support.
The company's Q3 performance exceeded expectations, and the market sees TSMC as a key player in the ongoing AI boom, with projections for nearly 30% yearly revenue growth.
The American chip manufacturing renaissance continues, with TSMC, Intel, and Samsung constructing new U.S. plants. The CHIPS Act aims to boost the U.S. share in global semiconductor manufacturing back to prominence.
