TSMC’s US plant unlikely to get newest chip tech earlier than Taiwan, CEO says

By Wen-Yee Lee

TAIPEI (Reuters) – TSMC’s new U.S. plant is unlikely to get essentially the most superior chip know-how earlier than factories in Taiwan resulting from advanced compliance points, native development laws and varied allowing necessities, the Taiwanese firm’s CEO stated.

Taiwan Semiconductor Manufacturing Co CEO and Chairman C.C. Wei stated constructing the brand new manufacturing facility in Arizona has taken no less than twice so long as in Taiwan, in feedback detailing particular challenges for the U.S. because it seeks to rebuild its home chip manufacturing sector.

“Each step requires a allow, and after the allow is authorized, it takes no less than twice so long as in Taiwan,” Wei stated late on Thursday at a Nationwide Taiwan College occasion. He added that it might due to this fact be laborious for TSMC to make use of its newest know-how within the U.S. earlier than Taiwan.

TSMC, the dominant maker of superior chips utilized by firms together with Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), is spending $65 billion on three big factories in the usstate of Arizona.

TSMC has stated most of its chip manufacturing would stay in Taiwan, particularly for essentially the most superior chips.

Wei stated at an earnings convention on Thursday that, regardless of varied challenges and price overruns, he was assured the Arizona manufacturing facility would produce the identical high quality of chips as in Taiwan, and he anticipated a easy ramp-up course of.

On the college occasion, Wei stated a scarcity of expert employees and gaps within the provide chain, in addition to an absence of laws involving chip plant development, have additional prolonged the timeline for its Arizona venture.

“We ended up establishing 18,000 guidelines, which price us $35 million,” Wei stated, noting that TSMC funded the hiring of a crew of specialists to work with the native authorities on regulatory points.

He added that chemical provide prices within the U.S. are 5 occasions these in Taiwan, main TSMC to ship sulphuric acid from Taiwan to Los Angeles after which truck it to Arizona.

Labour shortages have additionally posed challenges, with TSMC bringing half of the development employees from Texas to Arizona, growing prices resulting from relocation and lodging, he stated.

The U.S. authorities has supplied full-throated assist for the funding, together with a $6.6 billion grant, because it seeks to unfold geographic danger from an over-concentration of chip manufacturing in Asia, notably Taiwan.

U.S. Commerce Secretary Gina Raimondo stated final week that TSMC had begun producing superior 4-nanometer chips for U.S. prospects in Arizona, a milestone within the Biden administration’s semiconductor efforts.