The Taiwan Semiconductor Manufacturing Company (TSMC) is expected to finalize its construction partners for the third chip manufacturing facility in Arizona by the year's end, suggest Taiwanese supply chain sources. The facility will be a part of TSMC's sprawling Arizona campus, which has started manufacturing 4-nanometer products. The firm's plans filed with the Commerce Department indicate that the factory will manufacture 2-nanometer products.

TSMC's 2-nanometer Factory In Arizona Purportedly Ahead Of Schedule, Says Report

TSMC's Arizona campus plans, which were filed under the CHIPS Act and the firm's $65 billion investment, outlined its aim to build three factories. The first factory produces 4-nanometer chips, with reports suggesting that the plant has started making deliveries to big technology firms such as NVIDIA and Apple. The second site is expected to produce 3-nanometer products, and the firm broke ground at this site earlier this month shared a press release by the Commerce Department.

The third factory, called P3, is for 2-nanometer products and is slated to start production by the end of the decade, according to the initial plans filed with Commerce. However, supply chain reports from Taiwan suggest that TSMC might expedite production from this plant. They share that TSMC should finalize the contractor for the facility by the year's end after starting the process this quarter.

The sources add that TSMC's contractors might be able to speed up their construction of the third site due to experience gained by building the first two factories. They go as far as to state that the plant might be completed in one year at the earliest, which is similar to the construction speed in Taiwan. If the optimism bears fruit, then TSMC might be able to complete the plant by 2026 end and potentially start manufacturing 2-nanometer products at the site in the following year.

One key reason behind the expedited schedule is that TSMC's construction partners have been able to obtain licenses and set up a presence in the US. These suppliers include air conditioning, piping, electrical equipment and other companies, and the established base can allow them to potentially complete a plant's construction in four quarters - or just a quarter behind TSMC's timeline of three quarters in Taiwan.

The 2-nanometer manufacturing process technology is currently TSMC's leading product. It is expected to enter mass production in Taiwan this year, with the first set of chips intended for consumer electronics giant Apple. The 4-nanometer chips currently being produced in the US are adequate for AI computing since leading-edge technologies typically have to mature before they can withstand the higher power and performance requirements of AI and high-performance computing.

By: DocMemory
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