TSMC’s inaugural chip manufacturing facility in the US has experienced significant delays in its construction and operational timeline. However, the company asserts that upcoming facilities will progress at a much more rapid rate, facilitating the production of US-made chips for relatively newer Apple devices.
Despite this, former Intel CEO Pat Gelsinger remains skeptical of the effort, arguing that it will do little to position the US as a dominant player in the semiconductor industry.
‘Made in America’ Apple Chips
For those following the developments closely, the narrative is quite familiar.
Back in 2022, Apple revealed its ambition to produce ‘Made in America’ chips, a move celebrated as a significant achievement under the US CHIPS Act. This initiative involves establishing several TSMC manufacturing facilities in Arizona, with a portion of their output dedicated to chips for older Apple models.
However, the project has faced numerous hurdles and unexpected delays. The launch of mass production at the first facility, originally slated for last year, has been postponed to this year. Concerns have arisen regarding job creation in the US, as many roles were filled by workers from Taiwan, leading to accusations of “anti-American discrimination.”
There was also skepticism surrounding a recently announced $100 billion investment.
TSMC Assures Improved Timelines
The first TSMC facility is currently limited to manufacturing larger process chips intended for older Apple products. This includes the A16 chip, initially designed for the iPhone 14 Pro, which is no longer in production, and the basic iPhone 15 models that are still available but likely sold in limited quantities.
If establishing a new plant in the US takes several years, it risks confining US-manufactured Apple chips to older devices indefinitely.
However, Nikkei Asia reports that TSMC has assured investors that the slow pace witnessed with the first US facility will not be replicated. While the first facility took five years to build and launch, future US plants are projected to be operational in no more than two years.
This will result in a 3nm facility commencing operations in 2028 and a 2nm plant anticipated to be ready “before 2030.” Although these US plants will still lag behind TSMC’s cutting-edge facilities in Taiwan, they are expected to narrow the gap.
Skepticism from the Former Intel CEO
With TSMC’s advanced chip fabrication capabilities far exceeding those of US competitor Intel, it is unsurprising that the two companies are not particularly amicable. Following Apple’s transition from Intel-powered Macs to those utilizing Apple Silicon, Intel has maintained its intention to catch up or regain its former business.
Even after being ousted due to failure to deliver results, ex-CEO Pat Gelsinger continues to express skepticism regarding TSMC’s US plants. According to the Financial Times, he believes that these developments will make little difference in enhancing US semiconductor manufacturing.
“If you don’t have R&D in the US, you will not have semiconductor leadership in the US,” Gelsinger stated. “All of TSMC’s R&D is based in Taiwan, and they haven’t made any announcements to relocate it.”
Given that TSMC regards its base in Taiwan as critical to safeguarding the confidentiality of its most advanced technologies, it seems exceedingly unlikely that the company will transfer any significant R&D operations to the US.
