TSMC To Invest Additional $100 Billion In Arizona (apnews.com)
- Reference: 0184484688
- News link: https://news.slashdot.org/story/26/07/16/2158219/tsmc-to-invest-additional-100-billion-in-arizona
- Source link: https://apnews.com/article/taiwan-tsmc-chipmaking-ai-arizona-fab-ba05b1b952257d371acb9d070e7914ff
> As AI-related demand continues to jump and needs for computing power from data centers surge, TSMC has been expanding chip fabrication plants in the U.S., Japan and Taiwan. It said it is increasing its annual capital expenditure budget for this year to $60 billion-$64 billion, up from an earlier estimate of $52 billion-$56 billion.
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> TSMC, or Taiwan Semiconductor Manufacturing Co., is a key supplier to Nvidia and Apple. It had previously already committed $165 billion in the U.S. for building plants in Arizona, with six fabrication facilities planned. The extra $100 billion in investments are to "support the strong multiyear demand from our leading U.S. customers," C.C. Wei, chairman and CEO of TSMC, said during the company's quarterly earnings conference Thursday. An additional four fabrication plants in Arizona will likely be built with the new investments, TSMC said. They will focus on making some of the most advanced chips that are 2-nanometer and below.
[1] https://www.cnbc.com/2026/07/16/tsmc-second-quarter-profit-.html
But what about transistor size? (Score:2)
I'm tired of hearing about how close together they are putting transistors because the size of the transistors themselves is now several magnitudes greater than the gaps between them. When are they are going to start telling us they are making smaller transistors?
Re: But what about transistor size? (Score:2)
There is a physical limit to the size of the lithograpy used, the smaller the wavelength the smaller you can make things, that's why they're starting to use ultraviolet, which comes with its own problems.
Making 3D chips is the obvious way to go and they're on track there.
Physics is what it is
Re: (Score:2)
The 386 chip was a miracle of small transistor technology when it came out. Nothing compared to today's simplest CPUs. The miniaturization of technology is fascinating. I wonder how small they'll eventually go?
Capitalism or Dictatorship? (Score:2, Interesting)
Just wondering if TSMC is doing this because they think it makes financial sense (capitalism) or because a certain republican made an offer they can't refuse? (dictatorship)
Re: Capitalism or Dictatorship? (Score:3)
Many of their customers are in the US anyway. It makes sense to build there if that's what your customers want. Of course politics plays a role too!
Re: (Score:2)
> Many of their customers are in the US anyway. It makes sense to build there if that's what your customers want. Of course politics plays a role too!
It's not just the chips but also the packaging and supply chain. Making chips in Arizona that have to be sent back to Taiwan for packaging is costly. What the customers want is a reliably, steady supply at a reasonable cost. Whether that comes from Taiwan or Arizona doesn't really matter.
Trump is pushing for the US fabs, but TSMC might also be mitigating future risk in case of the theoretical Chinese invasion. There's another angle that Trump likely would hate. The Arizona plants allow TSMC to legitima
Re: (Score:2)
>> Many of their customers are in the US anyway. It makes sense to build there if that's what your customers want. Of course politics plays a role too!
> It's not just the chips but also the packaging and supply chain. Making chips in Arizona that have to be sent back to Taiwan for packaging is costly.
The existing TSMC plant is at an early stage of a long term plan. That overseas packaging is likely temporary.
> There's another angle that Trump likely would hate. The Arizona plants allow TSMC to legitimately send a bunch of Taiwanese to the US on L visas.
Really? He frequently comments on being in favor of legal immigration and legal guest workers, especially those of a highly skilled nature.
National security, happens with every admin (Score:2)
> Just wondering if TSMC is doing this because they think it makes financial sense (capitalism) or because a certain republican made an offer they can't refuse? (dictatorship)
Domestic manufacture can be required for use in Department of Defense related projects, national security, secure supply chain in the event of war, etc. Its like having a foreign company open a factory in the US to be eligible for a contract. Happens under all administrations.
During covid this idea was extended to medical stuff too, like the protective equipment that was no longer made domestically at the time. I guess public health stuff could fall under national security too.
I'll believe it when I see it (Score:2)
Until then, this is just another press release promise to get the tax breaks and scuttle.
TSMC is already making chips in the USA (Score:3)
TSMC is already making chips in the USA. From Google:
"TSMC’s massive $65 billion Phoenix, Arizona, project is rapidly expanding into a "gigafab" cluster. The first fab has been in production since late 2024 using 4nm process technology. Construction on the second fab is complete, with equipment installation underway ahead of an accelerated 2027 production target for 3nm chips.
Fab 1: High-volume production of 4-nanometer (N4) chips is actively supplying major U.S. customers like Apple and NVIDIA .
Reality check (Score:2)
On the topic, this is worth reading:
TSMC's $265B US fab pledge is the outline of a concept of a plan
Beware of fab makers bearing press releases
[1]https://www.theregister.com/sy... [theregister.com]
"Considering it takes four to five years to build and ramp production at a new fab site, that $200 billion in promises could take decades, assuming a global economic recession — triggered by a certain bubble bursting, perhaps — doesn’t derail those plans."
[1] https://www.theregister.com/systems/2026/07/16/tsmcs-265b-us-fab-pledge-is-the-outline-of-a-concept-of-a-plan/5273903
Reality check - making chips for Apple and NVidia (Score:2)
> TSMC's $265B US fab pledge is the outline of a concept of a plan
According to Google they are already " actively supplying major U.S. customers like Apple and NVIDIA " from the Arizona plant.
Re: (Score:2)
Yep, that article was right on point. This is just hot air because el Bunko runs on hot air. He's even now handicapping a projected loss in the midterms by blaming China for past "influence" conveniently forgetting (1) Russia and his favorite squeeze, Putin, was much more blatant, and (2) doing everything he can to weaken voting protections, and (3) doing everything he can to prevent people in blue states from voting and depressing blue voting in red states. He's gotten plenty of help from the Nazis on the
That's an awful lot of Iced Tea (Score:2)
But I guess they need it to keep their chips cool.
Need to start making 20 Angstrom chips (Score:2)
Enough of the nanometer business, lets get really small.
Re: (Score:2)
Isn't Intel already doing 18 Angstrom?