Asia Express - East Asian ICT
TSMC to Build New 5nm Fab in the United States
May 15, 2020

TSMC (Taiwan Semiconductor Manufacturing Co.) recently confirmed that the company will build a new semiconductor fab in Arizona, the United States, for US$12 billion during the period 2021-2029, the Central News Agency reported on May 15. Using TSMC’s 5nm technology, the new fab is anticipated to start construction in 2021 and begin semiconductor wafer fabrication some time in 2024 with targeted capacity of 20,000 wafers per month. Other than the new fab, TSMC already has an older fab in Washington State and design centers in Austin, Texas and San Jose, California. The new fab is to generate 1,600 local high-tech jobs and reduce US concerns over supply chain security. On top of that, this move generates good will from TSMC following the US Commerce Department’s rule that asks the company to blacklist Chinese telecom equipment maker Huawei, which is estimated to account for 15%-20% of TSMC’s total revenue, the company’s second largest customer next to Apple. The Trump administration has yet to disclose the details of financial support for the plan.