The Arizona facility is one of TSMC’s largest offshore projects, implemented with support from the American CHIPS Act program. In the first phase (phase 1A), the company will produce up to 20,000 wafers per month. It is planned to produce 2nm chips in the second phase in the future, but these plans remain uncertain due to difficulties in technology transfer between the USA and Taiwan.
But production in the US will cost significantly more. Production costs in Arizona will be about 30% higher than at TSMC’s factories in Taiwan, according to South Korean publication Yonhap. Reasons for this include material shortages, poor semiconductor supply chain infrastructure, and difficulties in achieving consistent yields.
These costs will likely be passed on to customers, which could lead to higher end device prices for consumers.
Source: Ferra
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