TSMC plans to manufacture 4nm chips at Arizona facility due to increasing demand from Apple

TSMC

The Taiwan Semiconductor Manufacturing Company (TSMC) will also make 4nm chips at its semiconductor fab in Arizona, when it opens in 2024, according to Bloomberg. The supply has been fueled by demand from customers like Apple, which alone makes up to 25% of TSMC's total revenue.

The new plan is expected to be announced when President Joe Biden and Commerce Secretary Gina Raimondo will visit Phoenix, Arizona. Previously, TSMC had stated that it will produce 5nm chips at its facility in the US.

Apple is planning to source part of its huge demand of chips from the Arizona plant. The company's CEO Tim Cook is also scheduled to attend the event next week. Out of the 20,000 wafers per month that TSMC will make at its Arizona facility, Apple is expected to use about one-third of the output.

The chip making company has also planned another fabrication nearby the originally planned one that will be able to produce even more advanced 3nm chips and is expected to start manufacturing in 2025. Apple is already in line to be one of the first takers of TSMC's 2nm chips as well.

Due to the supply chain disruptions and trade war with China, more companies are trying to bring production to Europe and the US. The US passed the Chips and Science Act earlier this year which will offer around $50 billion worth of incentives for companies that will manufacture semiconductors in the country. TSMC is likely to receive billions in subsidies.

Source: Bloomberg

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