Apple chip supplier TSMC plans to build a second $12 billion Arizona factory

TSMC, a supplier of Apple chips, is planning to build another manufacturing plant in Arizona alongside the $12 billion plant it has already committed in Phoenix, according to reports. The Wall Street Journal.

The second plant is located north of Phoenix and the investment is expected to be roughly similar to the $12 billion the company committed in 2020, according to people familiar with the plans who spoke with them. The Wall Street Journal.

The original plant was originally expected to exclusively mass-produce 5nm wafers, but is now also preparing to produce more advanced 4nm wafers with a larger capacity at the facility, according to The Wall Street JournalSources. The plant is expected to start mass production in 2024.

Meanwhile, the second plant is expected to manufacture advanced next-generation chips with 3nm technology, a process that Apple is rumored to be moving its custom silicon to begin with. M2 Pro or M3 chip. Both are apple M3 Chip for Mac and A17 Chip for iPhone 15 The Pro models are expected to be manufactured based on TSMC’s improved 3nm process. Bloomberg‘s Mark Gorman she has He said expected to M2 Pro to be used in 14-inch MacBook Pro, 16-inch MacBook Pro, and high-end device Mac mini.

The news about TSMC’s unannounced plans comes after attempts by the Biden administration to attract investments in the US chip industry by providing financial support to companies with billions of dollars to set up in the country. Efforts are aimed at countering the ambitions of China’s technology sector and securing components that are vital to national security. Efforts accelerated after chip shortages in late 2020 and 2021 underlined how important semiconductors are to the world of consumer electronics.

TSMC’s main factories are located in Taiwan, but it already operates a plant in Camas, Washington, as well as design centers in Austin, Texas and San Jose, California, meaning that the second Arizona facility will be its third manufacturing site in the United States. .