Due to growing demand from Apple, TSMC plans to produce 4nm chips at a facility in Arizona.

When it opens in 2024, the Arizona semiconductor fab owned by The Taiwan Semiconductor Manufacturing Company (TSMC) will also produce 4nm chips, according to Bloomberg. Demand from clients like Apple, which accounts for up to 25% of TSMC’s overall revenue, has pushed the supply.

When President Joe Biden and Commerce Secretary Gina Raimondo visit Phoenix, Arizona, the new strategy is anticipated to be revealed. TSMC had previously declared that it would manufacture 5nm chips at its US location.

Apple intends to purchase some of the vast quantity of chips it needs from the Arizona plant. Next week’s gathering will also likely include business CEO Tim Cook. Apple is anticipated to use around a third of the 20,000 wafers per month that TSMC will produce at its Arizona factory.

The chip manufacturer has also planned a second fabrication close to the first one that will be able to make even more advanced 3nm devices and is anticipated to begin production in 2025. Apple is already scheduled to purchase 2nm chips from TSMC among the first customers.

More businesses are attempting to move production to Europe and the US as a result of supply chain problems and the trade spat with China. The US approved the Chips and Science Act earlier this year, which will provide businesses that will produce chips in the nation with incentives of about $50 billion. Undoubtedly, TSMC will earn billions in subsidies.

Source: Bloomberg

Christopher Woodill

About ME

Enterprise technology leader for the past 15+ years…certified PMP, Six Sigma Black Belt and TOGAF Enterprise Architect. I collaborate with companies to help align their strategic objectives with concrete implementable technology strategies. I am Vice President, Enterprise Solutions for Klick Health.

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