RendForce: TSMC announced plans to set up factories in the United States, including a 12-inch semiconductor supply chain

October 26 12:20 2020
RendForce: TSMC announced plans to set up factories in the United States, including a 12-inch semiconductor supply chain

Wafer Plant
Taiwan semiconductor manufacturing corporation (TSMC) announced on May 15 that it will build a new 12-inch advanced in Arizona.

The plant is expected to start production in 2021 and start mass production in 2024. It plans to produce semiconductor chips in a 5-nanometer process with a monthly capacity of 20K. This project investment amount is about $12 billion, in 2021 began to divided into nine years of amortization, according to DRAMeXchange consulting semiconductor research center (DRAMeXchange) calculates that the average capital spending to $1.3 billion a year on the project, and at present, TSMC nearly two years, average annual capital expenditures of $15 billion, the project overall capital expenditure proportion of about ten percent.

TSMC currently has 12 fabs in 6, 8 and 12 inches, with 12 inches producing about 800K per month, according to Jibon. The only 8-inch wafer fab in America, in Camas, Washington, has a capacity of 40K a month, or only 1-2% of total capacity.

It has been more than a year since the news that TSMC will set up a factory in the US came out. Since the initial stage of sino-us trade friction, the US government has been considering the possibility of localization of semiconductor production based on the consideration of us national defense security. Although Intel also has a manufacturing base in the US, TSMC’s advanced manufacturing processes still have technological advantages, making it a natural choice for the US to consider cooperation. However, there are many factors involved in setting up a factory in the United States, and the military industry alone cannot support the operation of a 12-inch factory. The integrity of the whole supply chain and business model will be an important consideration in the future.

Cbi believes TSMC may move some of the high-margin products that U.S. companies invest in to the U.S. for simultaneous production. However, although TSMC already has an 8-inch plant in the US, the 12-inch plant has a different supply chain, so other semiconductor raw material manufacturers and even nearby component factories will not rule out moving to the US together. In the long term, the likelihood of the SEMICONDUCTOR industry being produced locally in the US will increase.

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