According to The Wall Street Journal, Apple chip supplier TSMC intends to construct a second fabrication facility in Arizona in addition to the $12 billion factory it has already committed to building in Phoenix. According to persons familiar with the plans who talked to WSJ, the second plant will be situated north of Phoenix and investment is anticipated to be about equivalent to the $12 billion the business committed to in 2020.
According to WSJ’s sources, the original plant is now preparing to also build more sophisticated 4nm devices with a bigger capacity at the facility, despite initial expectations that it would only mass-produce 5nm chips. In 2024, the factory is anticipated to begin mass production.
The second factory, meanwhile, is anticipated to produce cutting-edge third-generation (3nm) processors, a process to which Apple is reportedly switching starting with the M2 Pro or M3 chip. It is anticipated that TSMC’s improved 3nm process will be used to produce both Apple’s M3 processor for Macs and A17 chip for the iPhone 15 Pro models. The M2 Pro is anticipated to be utilised in the 14-inch and 16-inch MacBook Pro models as well as a high-end Mac mini, according to Bloomberg’s Mark Gurman.
The announcement of TSMC’s undisclosed plans follows efforts by the Biden administration to entice investments in American chip manufacturing by promising businesses billions in financial assistance to establish themselves in the nation.
The initiatives seek to secure elements deemed essential to national security and oppose China’s ambitions in the tech sector. The initiatives were stepped up after the chip shortages that occurred in late 2020 and early 2021 highlighted the significance of semiconductors in the field of consumer electronics.
The second Arizona facility will be TSMC’s third production location in the US; its primary facilities are in Taiwan, but it also has a factory in Camas, Washington, as well as design centres in Austin, Texas, and San Jose, California.
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