While TSMC’s progress on its Arizona chip plants hasn’t gone as intended, the company asserts that its second plant may produce 2nm chips in the U.S. as soon as 2028. Earlier projections only mentioned the production of 3nm chips by this time.
Nonetheless, the Taiwanese government has indicated that the initiation of 2nm chip manufacturing in Arizona might be postponed until 2029 or even 2030.
Arizona chip plants: A look at the journey so far
TSMC’s announcement regarding the establishment of a chip fabrication facility in Arizona was regarded as a significant achievement for the US CHIPS Act—aimed at reducing the U.S. reliance on China for advanced chips and creating employment opportunities domestically. Apple publicly declared its intention to procure American-made chips for a selection of its devices.
However, the excitement soon diminished. The facility will primarily produce larger process chips that are suitable only for older Apple models, and it wasn’t long before TSMC requested increased subsidies and fewer restrictions.
The project has faced delays and is exceeding its budget, with production now pushed to 2025 from the originally anticipated 2024. There are concerns that U.S.-made chips might be pricier than those manufactured in Taiwan, potentially leading Apple to purchase fewer chips than initially planned.
The promise of job creation in the U.S. came into question when TSMC opted to hire approximately 500 workers from Taiwan to expedite the construction. This decision sparked controversy, culminating in nearly half of the company’s workforce being sourced from Taiwan, and U.S. employees lodging a discrimination lawsuit in reaction.
2nm chip production in the U.S.
TSMC predominantly reserves its most advanced chip manufacturing plants for Taiwan, with U.S. facilities specializing in larger-process chips for older technology.
The expectation is that the Arizona plants will trail behind Taiwan by approximately three to five years, which suggests they could start manufacturing 2nm chips by 2028. Apple is believed to anticipate using 2nm chips for the iPhone 17, although the feasibility of this timeline is still uncertain.
According to TrendForce, TSMC has communicated its ambitious plans to the U.S. government, but the Taiwanese government has acknowledged that timelines may not align as hoped.
Documents provided by TSMC to the U.S. Department of Commerce suggest that the 2nm fabrication process could commence in the U.S. as early as 2028.
This plan to introduce the 2nm process stateside has garnered considerable attention. Wu Cheng-Wen, minister of Taiwan’s National Science and Technology Council, has remarked that TSMC’s timeline for introducing 2nm technology in the U.S. may indeed fall around 2028 but could also be deferred to 2029 or 2030.
The U.S. has allocated TSMC up to $6.6 billion through the CHIPS Act to facilitate the construction of the Arizona plants. The first plant is expected to begin producing 4nm chips for older Apple devices in the first half of next year, while the second facility aims to manufacture 2nm chips.
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