TSMC's Arizona Boosts Chip Yields Over Taiwan in 2024
- TSMC's Arizona facility has an impressive chip yield rate, outperforming similar plants in Taiwan.
- The company is expected to receive substantial government grants and loans to further enhance semiconductor manufacturing in the U.S.
- This achievement marks a pivotal moment in the effort to strengthen domestic chip production and reduce dependence on Taiwan.
In a significant development for semiconductor manufacturing, TSMC's Phoenix facility in the U.S. has reportedly achieved a yield rate of usable chips that is approximately 4 percentage points higher than that of its counterparts in Taiwan. This milestone was shared by Rick Cassidy, president of TSMC’s U.S. division, during a webinar. The yield rate is critical in the semiconductor industry as it impacts the cost-effectiveness of chip production. The current success points to progress in efforts to strengthen American chip manufacturing, a goal supported by government initiatives. TSMC is due to receive substantial financial assistance, including $6.6 billion in grants and $5 billion in loans to build multiple fabrication plants in Arizona. Despite earlier setbacks related to labor shortages and management challenges, TSMC is optimistic about starting full production of its first fab in early 2025, indicating that it can maintain the same manufacturing quality as its facilities in Taiwan. The company might even consider expanding its U.S. operations further with additional government support due to ongoing discussions about a potential second Chips Act. TSMC's advancements are particularly noteworthy given its historical preference for operating its most advanced facilities in Taiwan. The achievement signifies a turning point, highlighting the potential viability of U.S.-based semiconductor manufacturing and a shift in the industry landscape amidst growing geopolitical considerations.