TSMC Planning Advanced 3nm Chip Production at New US Factory, Founder Says

Taiwanese chipmaker TSMC is planning to produce chips with advanced 3-nanometre technology at its new factory in the US state of Arizona but the plans are not completely finalised yet, the company's founder Morris Chang said on Monday. Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple supplier and the world's largest contract chipmaker, is constructing a $12 billion (roughly Rs. 98,200 crore) plant in Arizona.

Last year, Reuters reported TSMC's plans to build more chipmaking factories in Arizona, including discussions about whether its next plant should be more advanced which could make chips with 3-nanometer technology compared to the slower, less-efficient 5-nanometer chips that will be churned out when the facility begins production.

Chang, speaking to reporters in Taipei after returning from the APEC summit in Thailand, said the 3-nanometre plant would be located at the same Arizona site as the 5-nanometre plant.

"Three-nanometre, TSMC right now has a plan, but it has not been completely finalised," said Chang, who has retired from TSMC but remains influential in the company and the broader chip industry.

"It has almost been finalised - in the same Arizona site, phase two. Five-nanometre is phase one, 3-nanometre is phase two."

TSMC, Asia's most valuable listed company, declined to comment.

The company is holding a "tool-in" ceremony in Arizona on December 6.

Chang said he would be attending, along with TSMC customers and suppliers and US Commerce Secretary Gina Raimondo. He added that US President Joe Biden has also been invited, but that he didn't know if he would be going.

Last month, TSMC reported) an 80 percent on-year surge in profit for the July-September period of 2022, the strongest growth in two years. However, TSMC also trimmed capital spending by at least 10 percent for this year. TSMC, Asia's most valuable listed company, said it was being more conservative in planning investments for 2023, but still expected "a growth year".

© Thomson Reuters 2022