TSMC Arizona achieves yield parity with Taiwan in production trials

TSMC Arizona successfully achieves the same yields as Taiwanese facilities

According to a report from Bloomberg (paywalled), TSMC’s new Arizona facility has achieved productivity levels on par with their Taiwanese fabs. These high silicon yields were achieved during recent production trials, which put to bed concerns that TSMC couldn’t achieve high levels of production efficiency in the US.

In Arizona, TSMC will use its new fab to start mass-producing 4nm silicon products in 2025. This manufacturing site is the first of many new US-based TSMC fabs. In 2028, TSMC plans to open a new fab focusing on newer 3nm and 2nm silicon manufacturing. This is “Phase 2” of TSMC’s plans for its Arizona site. Further in the future, TSMC also plans to create a more advanced fab in Arizona as part of their “Phase 3” plans.

So far, TSMC’s new fab in Arizona appears to be a successful venture. Achieving similar levels of productivity as their Taiwanese facilities is no small feat. Remember, having a new site in the US means that TSMC needs to set up supply chains in the US and hire local US staff. Both present difficulties for TSMC. This is why TSMC often builds new sites in Taiwan. After all, this allows them to benefit from its existing infrastructure and supply chains.

TSMC’s investments in the US are expected to reach $65 billion. However, $6.6 billion of this is “CHIPS Act” funding from the US government. Additionally, TSMC received $5 billion in loans from the US government.

TSMC’s investment in the United States will help the company become more self-sufficient in chip production. This is incredibly important given the rise of AI and growing demand for high-end silicon products.

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