TSMC Arizona delivers higher yields than comparable Taiwan fabs

TSMC’s first American fab is delivering higher yields than similar Taiwanese sites

Bloomberg (paywalled) reported a massive win for TSMC and the US’ chipmaking ambitions. TSMC Arizona has achieved yields that are 4% higher than comparable Taiwanese fabs, confirming that TSMC’s operations can succeed in the US.

This news puts to bed TSMC’s concerns about achieving the same levels of production efficiency in the US and opens the door to further expansion. For the US, this is a major win for the nation and their CHIPS Act funding efforts. Without this funding, TSMC would not have built this facility on US soil. Now that TSMC is present in the US, silicon supply chains have been expanded, creating avenues for further growth in this sector.

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 higher levels of productivity than their equivalent 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.

Apple has confirmed that its A16 Bionic SoCs are now being produced by TSMC in Arizona. AMD is reportedly planning to create chips at the same location in the near future.

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