TSMC’s Ambitious Venture in Arizona
Taiwan Semiconductor Manufacturing Company (TSMC), a leading player in the global semiconductor industry, revealed its plans in May 2020 to construct a state-of-the-art facility on the outskirts of Phoenix, Arizona. However, as of now, four years later, the company has not yet commenced the production of semiconductors at this facility.
The establishment of TSMC in Arizona was initially celebrated as a significant milestone for the U.S. technology sector. The facility was expected to not only enhance advanced chip manufacturing within the United States but also to help TSMC diversify its production capabilities away from Taiwan, an island democracy facing increasing geopolitical tensions from China. With a staggering investment commitment of $65 billion towards this project, TSMC has positioned itself as a key player in bolstering American semiconductor production.
In a significant development for the project, the Biden administration announced in April that TSMC would receive a substantial grant of $6.6 billion, funded by the CHIPS and Science Act, aimed at promoting domestic semiconductor manufacturing.
American officials have been increasingly apprehensive about the nation’s heavy dependence on TSMC for semiconductor supply. According to Gina M. Raimondo, the U.S. Secretary of Commerce, an alarming 92 percent of the country’s “leading edge” chips come from Taiwan. Thus, the TSMC factory in Arizona represents a critical test of the United States’ efforts to reduce its reliance on overseas chip production.
In Taiwan, TSMC has mastered a highly intricate manufacturing process, characterized by a robust network of skilled engineers and specialized suppliers, all backed by government support. This process involves the meticulous etching of microscopic pathways into silicon wafers.
However, translating this successful model to the American desert has proven to be more challenging than initially anticipated. As Richard Liu, the director of employee communications and relations at the Arizona site, remarked, “We continually remind ourselves that just because we excel in Taiwan does not guarantee that we can replicate this success in the U.S.”
