Key insights

• 💰 TSMC's $20 billion, 3.5-million-square-foot chip fab in Arizona is the most advanced on U.S. soil, representing a significant $20 billion investment.
• ⏳ Pilot production has begun, but volume production is delayed until 2025, facing challenges such as shipping bans and political opposition despite receiving funds from the CHIPS Act.
• 🛠️ The challenges of building a chip foundry in the U.S. include talent acquisition, engineering complexities, working with trades and unions, and local labor laws.
• 📈 TSMC's investment in Arizona is a response to the chip shortage and increasing demand for advanced chips, highlighting the significance of the completion of the fab in Arizona in U.S. chip manufacturing.
• 🛡️ The U.S. is not self-reliant in semiconductor production, with efforts to bring advanced production to the U.S. starting in 2018, driven by customer demand for supply resilience.
• 🌍 Reliance on TSMC's fabs in Taiwan has made the global chip supply chain vulnerable, with the U.S. aiming to increase control over the chip industry and decrease reliance on Asian suppliers.
• 🏗️ The $52 billion CHIPS Act aims to offset the high cost of building chip fabs in the U.S., with TSMC estimating construction costs in the U.S. to be at least four times higher than in Taiwan.
• 👩‍🔧 TSMC plans to hire 6,000 workers for its three fabs in Arizona by the end of the decade, addressing challenges such as water scarcity and power consumption while having global ambitions beyond Arizona.

Q&A

• What are TSMC's plans for the Arizona fabs?

  TSMC plans to hire 6,000 workers for its three fabs in Arizona by the end of the decade, addressing challenges such as water scarcity and power consumption. The company also has global ambitions beyond Arizona, including potential fabs in Asia, Europe, and the Middle East.

• What is the CHIPS act, and how does it impact TSMC and Intel?

  The $52 billion CHIPS act, signed by President Biden, aims to offset the high cost of building chip fabs in the U.S. TSMC and Intel have received billions in federal funds, but the U.S. faces a shortage of skilled workers and lacks experience in advanced semiconductor manufacturing.

• Why is the global chip supply chain vulnerable?

  The global chip supply chain is vulnerable due to reliance on TSMC's fabs in Taiwan, which exposes it to various risks such as lack of chip availability, surveillance to prevent technology reaching China, and the race for technological dominance.

• What is the U.S.'s struggle with semiconductor production?

  The U.S. is not self-reliant in semiconductor production, and efforts to bring advanced production to the U.S. started in 2018 due to supply chain risks, TSMC's dominance, and the push for domestic production.

• Why is TSMC's Arizona fab significant?

  The completion of the fab in Arizona marks a significant milestone in U.S. chip manufacturing, representing a shift in the industry and TSMC's response to customer demand for supply resilience.

• What challenges did TSMC face in building the chip fab in Arizona?

  TSMC faced challenges in talent acquisition, engineering complexities, overcoming obstacles in permitting, working with trades and unions, local labor laws, and mechanical, electrical, and plumbing issues.

• Why is TSMC entering U.S. chip production?

  TSMC's entry into U.S. chip production is a response to the global chip shortage and increasing demand for advanced chips.

• What is TSMC's investment in Arizona?

  TSMC is investing $20 billion in a 3.5-million-square-foot chip fab in Arizona, making it the most advanced chip fab on U.S. soil.

• 00:00 TSMC's $20 billion, 3.5-million-square-foot chip fab in Arizona is set to start advanced chip production in the U.S., facing delays and challenges, but representing a significant shift in the industry.
• 02:50 TSMC's Arizona chairman discusses the challenges of building a chip foundry in the US, including talent acquisition, engineering complexities, and overcoming obstacles. Despite initial delays, TSMC is close to full production with a focus on achieving high chip yields.
• 05:32 The U.S. struggles with self-reliance in semiconductor production. TSMC's dominance, supply chain risks, and the push for domestic production.
• 08:20 The global chip supply chain is vulnerable because of reliance on TSMC's fabs in Taiwan. The U.S. is trying to increase its control over the chip industry and decrease reliance on Asian suppliers. TSMC and Intel have different business models and are both building new fabs in Arizona.
• 10:44 The $52 billion CHIPS act, signed by President Biden in 2022, aims to offset the high cost of building chip fabs in the U.S. TSMC estimates that the construction cost in the U.S. could be at least four times higher than in Taiwan, and the completion of three fabs is estimated to cost $65 billion. The race to complete CHIPS Act deals has picked up after the election. TSMC and Intel have received billions of dollars in federal funds. However, the U.S. faces a shortage of skilled workers in the chip industry and lacks experience in advanced semiconductor manufacturing.
• 13:31 TSMC plans to hire 6,000 workers for its three fabs in Arizona by the end of the decade, addressing challenges such as water scarcity and power consumption. The company also has global ambitions beyond Arizona.