Leading Edge 4nm Technology
Taiwan Semiconductor Manufacturing Co. (TSMC) has begun producing 4-nanometer (4nm) chips for U.S. customers in Arizona, Commerce Secretary Gina Raimondo told Reuters on Friday.
“For the first time ever in our country’s history, we are making leading edge four-nanometer chips on American soil, American workers — on par in yield and quality with Taiwan,” Raimondo told Reuters in an interview saying it had begun in recent weeks.
“That’s a big deal — never been done before, never in our history. And lots of people said it couldn’t happen,” Raimondo said of the previously undisclosed production start.
A spokesperson for TSMC, the world’s largest contract chipmaker and a major supplier to Apple and Nvidia which reports earnings next week, declined to comment Friday.
In April, TSMC agreed to expand its planned investment by $25 billion to $65 billion and to add a third Arizona fab by 2030.
Congress created a $52.7 billion semiconductor manufacturing and research subsidy program in 2022. Commerce convinced all five leading edge semiconductor firms to locate fabs in the United States as part of the program. Raimondo told Reuters earlier that Commerce had to convince TSMC to boost its U.S. plans.
“It didn’t happen on its own… We had to convince TSMC that they would want to expand,” Raimondo said.
TSMC will produce the world’s most advanced two-nanometer technology at its second Arizona fab expected to begin production in 2028. TSMC also agreed to use its most advanced chip manufacturing technology called “A16” in Arizona.
The TSMC award from Commerce also includes up to $5 billion in low-cost government loans.
Raimondo wants the United States to make 20% of world’s leading-edge logic chips by 2030 — up from the 0% before TSMC began production in Arizona.
TSMC (Taiwan Semiconductor Manufacturing Company Limited or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world’s largest dedicated independent semiconductor foundry, and its country’s largest company, with headquarters and main operations located in Hsinchu, Taiwan. Although the central government of Taiwan is the largest individual shareholder, the majority of TSMC is owned by foreign investors. In 2023, TSMC served 528 business customers and manufactured 11,895 products for various applications covering a variety of end markets including high performance computing, smartphones, the Internet of Things (IoT), automotive, and digital consumer electronics.
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