TSMC Speeds Up Production Start in Phoenix – Investing in the Future of the Semiconductor Industry

Taiwan Semiconductor Manufacturing Co. (TSMC), the most valuable company in East Asia, has announced that the start of commercial chip production in their extensive complex in northern Phoenix, Arizona, will occur earlier than initially planned. Originally, production was slated to begin in the first half of the next year, but it is now set to commence at the beginning of 2025. This development signifies progress in the impressive $65 billion project and represents an important step for the U.S. semiconductor industry. TSMC CEO C.C. Wei reported that test production at the new facility has already delivered high-quality results. This announcement was made during the disclosure of quarterly figures, where the company announced a substantial profit of $10 billion on revenues of $23.5 billion for the quarter ending September 30. Wei emphasized that the company has made significant progress in Arizona and has received strong support from U.S. customers as well as local and federal authorities. The Phoenix facility, announced in 2020 after lengthy negotiations with Arizona representatives, will offer cleanroom areas more than twice the size of comparable facilities. These rooms are crucial for semiconductor manufacturing, as they feature extensive filtration systems to keep out dust particles that can interfere with electrical connections in chips. While the first production site in Arizona is set to become operational in early 2025, the construction of a second, more technologically advanced plant is planned, which will begin mass production in 2028. A third plant is also in planning and is expected to start production toward the end of the decade. TSMC thus remains a key player in supporting the success of its customers and the U.S. semiconductor industry as a whole. At the same time, Wei cautioned that manufacturing costs in the semiconductor industry have risen but promised to maintain efficient and cost-conscious production processes. These announcements came just days after layoffs at Intel, another major semiconductor manufacturer in the Phoenix area, which—similar to TSMC—has drawn significant subsidies from the CHIPS and Science Act.