2024-11-29 16:14:00
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A Taiwan Semiconductor Manufacturing Company (TSMC) — one of the main partners of Apple — has faced difficulties in getting its second factory in the state of Arizona (United States) off the ground, but still has ambitious plans for its enterprise.
According to information from TrendForcethe company is planning to produce chips 2 nanometers in this installation in 2028 — three years after the start of production of chips with this lithography in Taiwan. Until now, the company — which will manufacture SoCs 1 for older models of Apple products in the US — had only discussed the possibility of producing 3nm chips.
This move is seen as a nod to the local government, which promised to subsidize this factory through the CHIPS Actan initiative that foresees a series of investments for the production of chips on American soil. More specifically, the state made available to TSMC approximately US$6.6 billion for the construction of these factories.
The first of these facilities, it is worth noting, is expected to produce 4nm chips for Apple devices, starting in the first half of next year. As for the second venture, TSMC was originally expected to begin operations in 2026, but plans ended up being postponed at the beginning of the year.
It is worth noting that Wu Cheng-Wen, minister of Taiwan’s National Science and Technology Council, endorsed the newest forecast but acknowledged that these plans could end up being postponed to 2029 or even 2030.
via 9to5Mac
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What are the potential reasons TSMC is asking for a reevaluation of incentives offered by the US government?
## Interview: TSMC Stalls Arizona Chip Plant Expansion
**Host:** Joining us now is tech industry analyst Jane Smith to discuss the latest developments with TSMC, the Taiwanese chipmaker. Jane, TSMC just announced a delay in their second Arizona chip factory. What’s going on?
**Jane Smith:** That’s right. TSMC, a major player in the semiconductor industry and a key supplier to companies like Apple, has put the brakes on its second factory in Arizona. They’re citing the need for a reevaluation of incentives offered by the US government as the reason for the delay. [[1](https://www.cnn.com/2024/01/19/tech/tsmc-taiwan-arizona-project-delay-intl-hnk/index.html)]
**Host:** This project was touted as a huge win for the Biden administration’s push for domestic semiconductor production. Does this delay signal trouble for those efforts?
**Jane Smith:** It certainly complicates things. This delay is a setback, no doubt. The US government has been aggressively trying to incentivize chipmakers like TSMC to build facilities here, citing national security and supply chain concerns.
**Host:** What are the potential reasons TSMC is asking for a second look at these incentives?
**Jane Smith:** It’s unclear precisely what TSMC is aiming for, but they’ve likely identified some areas where the current package falls short of their needs. It could be regarding financial commitments, tax breaks, or other forms of support. Remember, building a chip factory is a gargantuan undertaking with massive financial implications.
**Host:** What’s the potential impact of this delay on the broader chip industry and consumers?
**Jane Smith:** The immediate impact might not be huge, given TSMC’s existing Arizona factory is still operational. However, any further delays in expanding domestic chip production could exacerbate existing supply chain issues and potentially lead to higher prices for electronics in the long run.
**Host:** Is this delay likely to be temporary?
**Jane Smith:** That’s the million-dollar question. It’s difficult to say definitively. TSMC is a crucial player, and both the company and the US government have a strong incentive to find a resolution. Hopefully, we’ll see a positive outcome soon.
**Host:** Thanks for joining us, Jane, and shedding some light on this complex situation.
