Taiwan Semiconductor Manufacturing Co (TSMC) has commenced the production of “advanced” four-nanometre chips in Arizona, US, Reuters reported citing US Commerce Secretary Gina Raimondo.
The latest move is part of the US government’s plans to increase domestic chip production.
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In November 2024, the US Commerce Department finalised a $6.6bn grant for TSMC’s US unit to support semiconductor production in Phoenix, Arizona.
“For the first time ever in our country’s history, we are making leading edge four-nanometre chips on American soil, American workers – on par in yield and quality with Taiwan,” Raimondo said.
“That’s a big deal – never been done before, never in our history. And lots of people said it couldn’t happen” Raimondo added.
Additionally, in April 2024, TSMC agreed to expand its planned investment by $25bn to $65bn, including the addition of a third Arizona fabrication plant by 2030.
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By GlobalDataThe US government established a $52.7bn semiconductor manufacturing and research subsidy programme in 2022 to bolster domestic production capabilities.
TSMC will start producing the advanced two-nanometer technology at the second Arizona fabrication plant in 2028.
The company has also committed to using its “most advanced” chip manufacturing technology, known as “A16,” in Arizona.
The Commerce Department’s award to TSMC includes up to $5bn in low-cost government loans, further supporting the company’s expansion efforts.
In another development, TSMC has severed ties with Singapore-based company PowerAIR, South China Morning Post reported.
This decision follows a client check triggered by the discovery of a TSMC chip in a Huawei Technologies AI processor, potentially violating US export controls.
PowerAIR is claimed to be the second company identified for possible involvement in a case linked to Chinese tech giant Huawei.
In 2024, TSMC suspended shipments to mainland China-based chip designing firm Sophgo after a chip it ordered matched one on Huawei’s Ascend 910B multi-chip system.
Huawei has been under a US ban since 2020, restricting its access to semiconductor foundries globally.
TSMC stated it had not supplied products to Huawei since 2020, and Huawei confirmed it had not produced any chips via TSMC after the US sanctions were implemented.
