iPhone Maker TSMC Constructing Plant That Could Be Its 2nd Chip-Making Unit In The US: Report

TSMC, which is one of the major iPhone makers for Apple has started construction of a multi-billion dollar building that could serve as its second chipset factory in Arizona.

The world's biggest contract manufacturer of chipsets is planning in the coming months to announce its cutting-edge semiconductor plant north of Phoenix, Arizona.

Taiwan Semiconductor Manufacturing Co, popularly known as TSMC, which is one of the major iPhone makers for Apple has started construction of a multi-billion dollar building that could serve as its second chipset factory in the US state of Arizona, the media has reported. The world's biggest contract manufacturer of chipsets is planning in the coming months to announce its cutting-edge semiconductor plant north of Phoenix, beside another chip factory that the company committed to in 2020, The Wall Street Journal has reported, citing people familiar with the expansion plans.

The scale of the investment is expected to be roughly similar to the $12 billion it committed two years ago, the WSJ report added.

TSMC's new manufacturing facility would be equipped to manufacture 3-nanometer or 3nm transistors, which are one of the tiniest and most lightning-fast currently possible, the report added, citing the people.

"In light of the strong customer demand we are seeing in TSMC's advanced technology, we will consider adding more capacity in Arizona with a second fab based on operating efficiency and cost economic considerations," the company was quoted as saying by news agency Reuters.

Meanwhile, the construction of TSMC's first chip plant in the US state of Arizona is running three to six months behind schedule, previous reports said. The reasons are said to be a mix of COVID-19 surges, labour shortage and difficulties in obtaining construction licenses.

The Taiwanese chip-making major had initially planned to start moving in chip production equipment by around September this year, but the company has told suppliers that this will be pushed back to around February or March of 2023, several people with knowledge of the matter were quoted as saying by Nikkei Asia in February.

Earlier in April, a WSJ report suggested that TSMC was considering building a semiconductor factory in Singapore, in an attempt to help in the global supply shortage of chips.