TSMC announces that it will invest $12 billion in the creation of a chip factory in Arizona, creating 1,600 jobs to produce some of its 5-nanometer chips. The Taiwanese company is the world’s largest semiconductor foundry and its customers include brands such as Apple, which uses its transistors to produce its Apple AX processors.
The opening of this factory on North American soil is presented as a victory for Trump, which has campaigned to try to eliminate Asia’s dependence on chip production. According to the Wall Street Journal, both the US State and Commerce Departments have been involved in the talks with TSMC.
Making smaller and smaller chips is expensive and complex, but it is a major leap in performance and efficiency. These 5 nanometer chips will be the absolute stars between 2021 and 2022, not only for Apple with its future Apple A14, but also for others such as AMD with its Zen 4 architecture, Intel or NVIDIA.
The construction of the factory in the United States is planned for 2021, with production starting in 2024. Prior to that date, TSMC will produce its 5-nanometer chips from Taiwan, for which it has invested $17 billion in another plant and from which it will initially supply Apple for the upcoming iPhone.
Following the estimated dates, the 5 nanometer chips are expected to arrive initially from Asia so that in the future, once their use has expanded, they can be partially produced from a location closer to North American companies such as Apple.
The U.S. welcomes TSMC’s intention to invest $12B in the most advanced 5-nanometer semiconductor fabrication foundry in the world. This deal bolsters U.S. national security at a time when China is trying to dominate cutting-edge tech and control critical industries.
— Secretary Pompeo (@SecPompeo) May 15, 2020