TSMC’s Arizona chip plant outperforms Taiwan’s, boosting US drive

Early production yields at the first TSMC plant in Arizona have surpassed similar factories in Taiwan, an executive says

Reading Time:2 minutes

US President Joe Biden speaks at a ceremony celebrating the construction of a TSMC factory in Phoenix, Arizona, in December 2022. Photo: Kyodo

Published: 11:15am, 25 Oct 2024

Taiwan Semiconductor Manufacturing Company (TSMC) has achieved early production yields at its first plant in Arizona that surpass similar factories back home, a significant breakthrough for a US expansion project initially dogged by delays and worker strife.

The share of chips manufactured at TSMC’s facility in Phoenix that are usable is about 4 percentage points higher than comparable facilities in Taiwan, Rick Cassidy, president of TSMC’s US division, told listeners on a webinar Wednesday, according to a person who took part. The success rate, or yield, is a critical measure in the semiconductor industry because it determines whether companies will be able to cover the enormous costs of a chip plant.

The accomplishment is a sign of progress for Washington’s efforts to revitalise American semiconductor manufacturing. TSMC, the main chip manufacturing partner for Nvidia and Apple, is in line to win US$6.6 billion in government grants and US$5 billion in loans – plus 25 per cent tax credits – to build three fabrication facilities, or fabs, in Arizona. The award, like almost all others from the 2022 Chips and Science Act, is not yet finalised.

A TSMC representative declined to comment directly on Cassidy’s event and referred to remarks from chief executive officer C.C. Wei on a call with investors last week.

A TSMC fab in the southern Taiwanese city of Tainan. Photo: Reuters

“Our first fab entered engineering wafer production in April with 4-nanometer process technology, and the result is highly satisfactory, with a very good yield,” he said at the time. “This is an important operational milestone for TSMC and our customers, demonstrating TSMC’s strong manufacturing capability and execution.”