Chipmaker TSMC might presumably well well also very neatly be planning to build up extra chip factories in Arizona

(Reuters) — Taiwan Semiconductor Manufacturing Co (TSMC) is planning to build up a whole lot of extra chipmaking factories within the U.S. issue of Arizona beyond the one on the second planned, three of us familiar with the topic told Reuters.

TSMC, the world’s largest contract chipmaker, launched in May perchance presumably also honest 2020 it might well probably presumably well perhaps accumulate a $12 billion manufacturing facility in Arizona, an obvious steal by the Trump administration in its push to struggle global tech present chains assist from China.

TSMC is developing a 12-inch wafer fabrication plant in Phoenix, and the facility is anticipated to open volume production in 2024, Taiwan’s funding commission of the ministry of financial affairs, which permitted the funding, said in December.

TSMC manufactures the majority of its chips in Taiwan and has older chip facilities in China and the U.S. issue of Washington.

Three sources familiar with the topic, speaking on situation of anonymity as they were now not permitted to talk to the media, told Reuters that as much as five extra fabs for Arizona are being planned.

The preliminary fab is comparatively modest by exchange requirements, with a planned output of 20,000 wafers — every of which comprises hundreds of chips — every month using the firm’s most subtle 5 nanometre semiconductor manufacturing technology.

It’s now not obvious how principal extra production skill and funding the extra fabs might presumably well well signify, and which chip manufacturing technology they might use.

TSMC last month said it planned to make investments $100 billion over the next three years to amplify production skill, even though it did now not give minute print.

One particular person with jabber recordsdata of the topic told Reuters the growth became in response to a search recordsdata from from the U.S., however declined to create extra minute print.

“The US requested it. Internally TSMC is planning to procure to six fabs,” the particular person said, adding that it became now not imaginable to give a timeframe.

The Biden administration is preparing to use tens of billions of greenbacks to enhance home chip manufacturing. Under unique guidelines, international companies are eligible for those funds, however whether or not they’re going to within the slay accumulate it is an open query.

A second particular person familiar with the plans said the firm had already made sure there became sufficient room for growth after they got the land for the principle plant.

“It’s so that they’ll accumulate six fabs,” the source said.

The third particular person, from a TSMC dealer enthusiastic with the Arizona mission, said TSMC had told them the figuring out became to build up a total of six fabs over the next three years.

Reuters became now not ready to independently verify the timeframe.

TSMC referred to feedback by CEO C.C. Wei on an earnings call last month, saying the firm became starting chip production in Arizona in 2024 with a 20,000 wafer per month 5-nanometer technology.

“However in actuality, we personal now obtained a dapper fragment of land in Arizona to create flexibility. So extra growth is imaginable, however we are going to doubtless be in a position to ramp as much as Portion 1 first, then basically basically based on the operation effectivity and ticket economics and moreover the purchasers’ demand, to make a choice what the next steps we are going to develop.” Asked whether the planned growth became thanks to a search recordsdata from from america, TSMC said it became “now not sure” what became supposed by “requests” coming from the U.S. aspect and that it’ll pick next steps basically basically based on operational effectivity, ticket economics and buyer demand.

“Once there is any reliable decision, we are going to doubtless be in a position to say it accordingly.”