Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest manufacturers of semiconductors on contract, has begun the construction of their Arizona Chip plant. CEO C.C.
Wei addressed the clients and investors at TSMC’s annual technology presentation. He also stated that the new facility would start mass production of their chips which use the 5-nanometer chipmaking process from 2024 onwards.
TSMC is pouring a massive $12 billion into their Arizona project to build a computer chip factory. This year too, the presentation was held online for a second consecutive year due to COVID concerns.
The US Senate advanced a whopping $54 billion in subsidies for the chip industry last week. Major frontrunners competing for a chink of this subsidy will be Intel, Samsung Electronics, and TSMC. There is also news stating TSMC’s endeavours of building as many as 6 factories in its Arizona site in the coming years.
The Future of TSMC
TSMC has played a vital role in catering to the global shortage of chips, and in a short time, it has taken on the wheels. The shortage of chips was hurting a lot of industries. TSMC’s successful endeavours to meet such a huge demand have led it to become Asia’s most valuable manufacturing company.
Its shares kept soaring, and currently, TSMC has a market capitalization of about $563 billion. This is huge in terms of the company’s importance to the supply chain.
Back in April, TSMC also announced a $100 billion investment plan. This would be spent over the coming 3 years to increase its manufacturing capacity. During his presentation, Wei also stated that $30 billion would be invested this year alone. “That will give us enough manufacturing capacity to support the growth of our clients,” Wei stated.
Wei also hinted at the development of newer and more advanced chips which would help in AI applications. He also mentioned that the company’s factory in Tainan, Taiwan will begin mass production using their next-generation 3-nanometer production technology later this year.