Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday unveiled the layout of its new fab in Arizona and reiterated its determination to ramp up advanced 5-nanometer chip production in 2024.
The company said that construction of Fab 21, in which it would invest US$10 billion to US$12 billion, has begun on a 445 hectare plot in Phoenix.
“As we expect demand for 5-nanometer [chips] will be strong and sustainable in the long term, we have made the Arizona fab, Fab 21, one of the 5-nanometer manufacturing sites,” TSMC chief executive officer C.C. Wei (魏哲家) told the company’s annual technology symposium.
Photo: Grace Hung, Taipei Times
The chipmaker has shipped more than 500,000 5-nanometer chips from its Fab 18 in Tainan since the technology became available last year, thanks to robust customer demand for smartphones, 5G applications, artificial-intelligence (AI) applications, networking devices and high-performance computing devices, Wei said.
The first phase of the Arizona fab would have an installed capacity of 20,000 wafers a month, TSMC said.
In January, the chipmaker said that further expansion would depend on market conditions and US government support.
TSMC yesterday introduced the technology for its new N5A process to produce 5-nanometer chips for automotive applications such as AI-enabled driver assistance and the digitization of vehicle cockpits.
Production using the N5A process is scheduled to be available in the third quarter of next year, Wei said.
The chipmaker said that its 3-nanometer technology would be the world’s most advanced technology when volume production begins in the second half of next year.
Its fabs in Tainan would be its major manufacturing sites for 3-nanometer chips, TSMC said.
To expedite mass production of 3-nanometer and 2-nanometer chips, TSMC is transforming its 2-nanometer research centers in Hsinchu into sites for initial production of new-generation chips, it said.
TSMC has been boosted capacity to catch up with customers' rising demand,expecting that its advanced technology capacity would expand at a compound annual rate of 30 percent from 2018 to this year.
Among advanced technologies,7-nanometer chip capacity would have increased fourfold until this year since 2018, TSMC senior vice president Y.P. Chin (秦永沛) told the symposium.
Five-nanometer chip capacity would quadruple until 2023 from last year’s level, he said.
The company is also expanding its advanced chip testing and packaging capacity to cope with growing demand, Chin said.
TSMC is building its fifth fab in Miaoli County’s Jhunan Township (竹南), which would offer the most advanced 3D packaging technology of system-on-integrated-chip in the second half of next year, he said.
RUN IT BACK: A succesful first project working with hyperscalers to design chips encouraged MediaTek to start a second project, aiming to hit stride in 2028 MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it is engaging a second hyperscaler to help design artificial intelligence (AI) accelerators used in data centers following a similar project expected to generate revenue streams soon. The first AI accelerator project is to bring in US$1 billion revenue next year and several billion US dollars more in 2027, MediaTek chief executive officer Rick Tsai (蔡力行) told a virtual investor conference yesterday. The second AI accelerator project is expected to contribute to revenue beginning in 2028, Tsai said. MediaTek yesterday raised its revenue forecast for the global AI accelerator used
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
Dutch chipmaker Nexperia BV’s China unit yesterday said that it had established sufficient inventories of finished goods and works-in-progress, and that its supply chain remained secure and stable after its parent halted wafer supplies. The Dutch company suspended supplies of wafers to its Chinese assembly plant a week ago, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” Reuters reported on Friday last week. Its China unit called Nexperia’s suspension “unilateral” and “extremely irresponsible,” adding that the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement
Artificial intelligence (AI) giant Nvidia Corp’s most advanced chips would be reserved for US companies and kept out of China and other countries, US President Donald Trump said. During an interview that aired on Sunday on CBS’ 60 Minutes program and in comments to reporters aboard Air Force One, Trump said only US customers should have access to the top-end Blackwell chips offered by Nvidia, the world’s most valuable company by market capitalization. “The most advanced, we will not let anybody have them other than the United States,” he told CBS, echoing remarks made earlier to reporters as he returned to Washington