TSMC Set to Manufacture 4nm Chips in Arizona

Taiwan Semiconductor Manufacturing Co (TSMC) has commenced production of advanced four-nanometer chips for U.S. customers at its facility in Phoenix, Arizona, marking a significant milestone in the Biden administration's semiconductor initiatives. This is the first time in U.S. history that such cutting-edge chips are being produced domestically, Commerce Secretary Gina Raimondo revealed in an interview with Reuters.

The production started in recent weeks, following the U.S. Department of Commerce's approval of a $6.6 billion grant to TSMC's U.S. unit in November. Raimondo emphasized the significance of the achievement, stating, "For the first time ever in our country's history, we are making leading-edge four-nanometer chips on American soil, with American workers – on par in yield and quality with Taiwan."

TSMC, the world's largest contract chipmaker and a major supplier to companies like Apple and Nvidia, has expanded its investment in Arizona significantly. In April, the company announced an additional $25 billion investment, bringing its total commitment to $65 billion, and plans to build a third semiconductor fabrication plant (fab) in the state by 2030.

This achievement is part of a broader U.S. effort to bolster domestic semiconductor manufacturing. In 2022, Congress approved a $52.7 billion subsidy program for semiconductor manufacturing and research. Through this initiative, the Department of Commerce successfully persuaded all five leading-edge semiconductor firms to establish manufacturing facilities in the United States.

Raimondo acknowledged the challenges involved in securing TSMC's commitment to expanding its U.S. operations, stating, "It didn't happen on its own... We had to convince TSMC that they would want to expand."

The development is a critical step in reducing U.S. dependence on foreign semiconductor manufacturing and enhancing the nation's technological infrastructure.