TSMC is rumored to be building more factories than expected in Arizona. Reuters has reported that TSMC is planning on building up to up to 6 fabs over the next 3 years. an anonymous source has claimed. While they have already committed to building 1 fab TSMC looks to expand on that by adding an additional 5.

Back in 2020 TSMC announced that they will be building a single fab in Arizona. That is financed partly by the U.S government, Arizona and TSMC. This fab was going to be capable of producing 20,000 wafers per month on their 5nm node. As part of TSMC new subsidiary.

It was previously reported that TSMC was planning on creating 6 fabs in Arizona. But these were unconfirmed reports coming from UDN. Now that Reuters has also started to report on the 6 fabs construction it adds more credibility to the report. As of now it is still rumored as the first fab hasn’t even begun construction. TSMC with the government’s help has high ambitions to bring more chip manufacturing to the United States.

The United States does want to reduce the reliance on foreign companies when it comes to the semiconductor supply chain. This is also in the middle of the ongoing chip shortage that has been plaguing the industry throughout 2021. While this should be resolved by the time they complete construction of the facility.  It does help point out that this could be needed for more fabs in the future.

Planned all along?

It is worth mentioning that TSMC accounted for building more fabs when they originally purchased the land. TSMC have shown commitment by purchasing 1,128 acres in north Phoenix. Rueters “We have acquired a large piece of land in Arizona to provide flexibility. So further expansion is possible, but we will ramp up to Phase 1 first, then based on the operation efficiency and cost economics and also the customers’ demand, to decide what the next steps we are going to do.”

We shouldn’t expect to see any new developments on this right away. But judging by reports the current crisis and the amount of land the TSMC has purchased. We shouldn’t rule out the possibility of TSMC establishing a large presence in the United States.

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