Categories: Tech News

TSMC could be planning a huge fab expansion in Arizona

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The big picture: Chipmakers are investing money hand over fist in an attempt to alleviate the ongoing chip shortage, but even with all of the money in the world, time is the biggest enemy. Some, like Intel CEO Pat Gelsinger, believe it could take a couple of years before they're able to catch back up with demand.

Taiwan Semiconductor Manufacturing Company (TSMC) is planning to build several additional chipmaking factories in Arizona.

The chipmaker, if you recall, announced in May 2020 that it would spend $12 billion to construct a new factory in Arizona. Upon completion, the factory is expected to turn out 20,000 semiconductor wafers per month on a 5nm process and create some 1,600 high-tech jobs.

Anonymous sources reportedly familiar with the matter told Reuters that TSMC is preparing to build up to five additional fabs in Arizona. Sources didn’t say how much additional production capacity the new fabs would bring to the table, nor did they mention what manufacturing technology they will utilize.

Two sources told Reuters that TSMC has its sights set on building six fabs. One person said the construction will happen over the next three years, but the publication was unable to independently confirm that timeline (It's unclear if they meant six new fabs, or six fabs total including the one already announced).

Just last month, TSMC announced plans to spend $100 billion over the next three years on expansion and R&D projects, and yesterday, Intel said it would spend $3.5 billion to upgrade its chip production facilities in New Mexico.

“Once there is any official decision, we will disclose it accordingly,” TSMC said when probed for comment by Reuters.

Image credit Ascannio, Quardia


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