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Worlds largest chipmaker will move operations to Arizona
Posted on 4/8/24 at 11:35 am
Posted on 4/8/24 at 11:35 am
quote:
TSMC boosts Joe Biden’s AI chip ambitions with $11.6bn US production deal
World’s biggest chipmaker will build cutting-edge facilities in Arizona in exchange for billions in subsidies
quote:
The world’s biggest chipmaker, Taiwan Semiconductor Manufacturing Co, has agreed to make its most advanced products in Arizona from 2028, in a boost to White House efforts to bring semiconductor production on to home soil.
TSMC will make the latest cutting-edge 2-nanometre chips in a fabrication plant, or fab, it is building in Phoenix, Arizona, marking an upgrade from its previous plans.
That facility will be the company’s second in the US. The first, which is also in Arizona and was announced in 2020 under the Trump administration, will begin production next year.
TSMC also said on Monday that it will increase its total investment in the US from $40bn to $65bn to build a third fab, with 2nm or even more advanced technology, which will be operational by 2030.
The Taiwanese company and the US commerce department said on Monday that Washington would provide it with support worth $6.6bn in grants and up to $5bn in loans.
The subsidies fall under the Chips Act, which was passed in 2022 to boost US chipmaking. Last month, the Biden administration unveiled a deal for $8.5bn in grants and up to $11bn in loans for Silicon Valley’s Intel, which has pledged $100bn in new investment.
TSMC’s commitment helps the White House move towards its goal of bringing 20 per cent of the world’s advanced semiconductor manufacturing onshore by 2030.
quote:
Growing fears of a Chinese invasion of Taiwan, where 90 per cent of cutting-edge chips are currently made, have prompted the US to step up efforts to boost its domestic semiconductor production.
“TSMC is expanding its manufacturing capabilities in Arizona such that for the first time ever we will be making, at scale, the most advanced semiconductor chips on the planet here in the United States of America,” said US commerce secretary Gina Raimondo. “[We are] massively strengthening our national security position.”
“Our US operations allow us to better support our US customers, which include several of the world’s leading technology companies,” said Mark Liu, chair of the leading contract chipmaker.
The latest plans will bring semiconductor production in the US closer to the state of the art, as artificial intelligence drives demand for ever more computing power.
TSMC previously planned to run its US fabs on older manufacturing technology than its most advanced mass production in Taiwan.
By 2026, most AI chips will run on 3nm, meaning that the production capabilities of TSMC’s first Arizona plant will fall short.
By the time TSMC’s second Arizona fab opens in 2028, Nvidia and other AI chip vendors are likely to have migrated to 2nm, said an engineer familiar with the process. Therefore, TSMC’s original plan to have that plant run on 3nm “didn’t make sense”, a company executive said.
The US hopes the TSMC deal will mean that some of the most advanced chips used in AI could be partly made in the US by the end of the decade, reducing the reliance of chipmakers such as Nvidia and AMD on Asian production.
“The chips that TSMC makes . . . underpin all AI. Tens of thousands of leading-edge chips are required to train a single frontier AI model [such as OpenAI’s GPT4],” Raimondo said. “And now, because of this announcement, these chips will be made in the United States of America.”
But industry executives and analysts said that claim went too far.
“Having 2nm in the second fab doesn’t mean Nvidia will not be buying chips made in Taiwan any more,” said a person familiar with TSMC’s plans, “it just means that they will have an option to issue a special requirement that a certain amount of their chips come from that [Arizona] fab.”
TSMC’s leading-edge fab investment at home continues to far outpace that in the US. It will start 2nm mass production next year and plans to build “multiple” more fabs operating on that technology in three locations in Taiwan, Liu told investors in January.
Posted on 4/8/24 at 11:36 am to nycguy
quote:
’Sleepy Joe’ is not that sleepy. Rishi Sunak and other european leaders have a whole lot to learn from him…
Posted on 4/8/24 at 11:39 am to nycguy
quote:
’Sleepy Joe’ is not that sleepy.
Yes yes, he was the mastermind behind the whole thing.
Posted on 4/8/24 at 11:40 am to tigersbh
I highly doubt you know more about this subject than I do
Posted on 4/8/24 at 11:40 am to nycguy
I’ll keep getting mine from Gramercy, thanks.
Posted on 4/8/24 at 11:41 am to nycguy
quote:
That facility will be the company’s second in the US. The first, which is also in Arizona and was announced in 2020 under the Trump administration, will begin production next year.
So they also announced this under Trump but now Biden gets credit for them building a second plant?
Posted on 4/8/24 at 11:43 am to bad93ex
Difference is we will actually build it now.
Posted on 4/8/24 at 11:43 am to nycguy
Domestic manufacturing incentives under the IRA and the nuclear production tax credit are really about the only thing he's done right.
Posted on 4/8/24 at 11:43 am to nycguy
quote:
World’s biggest chipmaker will build cutting-edge facilities in Arizona in exchange for billions in subsidies
We have to bribe manufacturers because its too expensive to produce materials in this country.
Posted on 4/8/24 at 11:44 am to RogerTheShrubber
Wasn't sure if we were talking micro or potato
Posted on 4/8/24 at 11:45 am to nycguy
quote:
Difference is we will actually build it now.
Did you miss the part where the first plant will go live later this year?
Posted on 4/8/24 at 11:46 am to billjamin
quote:
Domestic manufacturing incentives under the IRA and the nuclear production tax credit are really about the only thing he's done right
Almost like he copied Trump's plan
Posted on 4/8/24 at 11:46 am to OysterPoBoy
quote:
I’ll keep getting mine from Gramercy, thanks.
It's been shut down for a while now.
Biden needs to step up and help out the River Parishes.
Posted on 4/8/24 at 11:47 am to bad93ex
Lol you have no clue, what we've done in the past 12 months to ensure the most advanced technology will be built in the USA is the real story
Posted on 4/8/24 at 11:47 am to nycguy
quote:
Worlds largest chipmaker
Posted on 4/8/24 at 11:48 am to nycguy
quote:
Lol you have no clue, what we've done in the past 12 months to ensure the most advanced technology will be built in the USA is the real story
Share you reddit link to the story
Posted on 4/8/24 at 11:49 am to bad93ex
quote:
Almost like he copied Trump's plan
Did Trump have a plan to restructure the tax incentives to ensure domestic content? Thats a legit question. I hadn't heard about him predicating many of the investment tax incentives on domestic content.
Posted on 4/8/24 at 11:50 am to nycguy
Biden still sucks.
Can't wait until he's out of office.
Can't wait until he's out of office.
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