TSMC’s Arizona factory will hardly be beneficial without U.S. subsidies

According to the latest report, TSMC announced in 2020 that the wafer foundry to be built in Arizona, USA, has officially started construction in June last year and is scheduled to be put into production in 2024.

For TSMC’s fab in Arizona, USA, some industry observers believe that it will be difficult to make a profit without the subsidies promised by the United States.

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Moreover, the industry observer said the cost of ramping up capacity at TSMC’s new Arizona plant would be huge, and it’s hard to predict when the plant will be profitable without adequate subsidies.

In the report, sources also mentioned that TSMC and Samsung Electronics hope that they can receive the subsidies planned by the United States like the manufacturers headquartered in the United States. The United States plans to invest and build factories in the United States. billions of dollars in funding.

Regarding U.S. subsidies, TSMC Chairman Liu Deyin previously said that U.S. subsidies and support are critical to whether their Arizona factory can operate at a cost level comparable to other factories.

Furthermore, TSMC’s construction of a wafer fab in Arizona was officially announced on May 15, 2020. After completion, it will use the 5nm process technology to manufacture wafers for related manufacturers, with a planned monthly production capacity of 20,000 wafers. It is planned to be put into production in 2024. TSMC plans to invest $12 billion in the plant by 2029.

(via)