https://www.reuters.com/technology/tsmc-begins-producing-4-nanometer-chips-arizona-raimondo-says-2025-01-10/

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TSMC begins producing 4-nanometer chips in Arizona, Raimondo says

By David Shepardson
January 10, 202511:33 PM UTCUpdated ago

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Logo of Taiwan Semiconductor Manufacturing Co (TSMC), in Hsinchu
The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured
at its headquarters, in Hsinchu, Taiwan, January 19, 2021. REUTERS/
Ann Wang/File Photo Purchase Licensing Rights, opens new tab
WASHINGTON, Jan 10 (Reuters) - Taiwan Semiconductor Manufacturing Co
(2330.TW), opens new tab has begun producing advanced four-nanometer
chips for U.S. customers in Arizona, Commerce Secretary Gina Raimondo
told Reuters, a milestone in the Biden administration's semiconductor
efforts.
In November, Commerce finalized a $6.6 billion grant to TSMC's U.S.
unit for semiconductor production in Phoenix, Arizona.
"For the first time ever in our country's history, we are making
leading edge four-nanometer chips on American soil, American workers
-- on par in yield and quality with Taiwan," Raimondo told Reuters in
an interview saying it had begun in recent weeks.
"That's a big deal -- never been done before, never in our history.
And lots of people said it couldn't happen," Raimondo said of the
previously undisclosed production start.
A spokesperson for TSMC, the world's largest contract chipmaker and a
major supplier to Apple (AAPL.O), opens new tab and Nvidia (NVDA.O),
opens new tab which reports earnings next week, declined to comment
Friday.
In April, TSMC agreed to expand its planned investment by $25 billion
to $65 billion and to add a third Arizona fab by 2030.
Congress created a $52.7 billion semiconductor manufacturing and
research subsidy program in 2022. Commerce convinced all five leading
edge semiconductor firms to locate fabs in the United States as part
of the program.
Raimondo told Reuters earlier that Commerce had to convince TSMC to
boost its U.S. plans.
"It didn't happen on its own... We had to convince TSMC that they
would want to expand," Raimondo said.
TSMC will produce the world's most advanced two-nanometer technology
at its second Arizona fab expected to begin production in 2028. TSMC
also agreed to use its most advanced chip manufacturing technology
called "A16" in Arizona.
The TSMC award from Commerce also includes up to $5 billion in
low-cost government loans.
Raimondo wants the United States to make 20% of world's leading-edge
logic chips by 2030 -- up from the 0% before TSMC began production in
Arizona.
In April, Commerce said TSMC expects to begin high-volume production
in its first U.S. fab by the first half of 2025.
Last month, Commerce finalized an award of $407 million to help fund
Amkor Technology's (AMKR.O), opens new tab planned $2 billion
advanced semiconductor packaging facility in Arizona, which is set to
be the largest of its kind in the U.S.
Amkor's Arizona plant when fully operational will package and test
millions of chips for autonomous vehicles, 5G/6G and data centers.
Apple will be its first and largest customer with the chips produced
at a nearby TSMC facility.

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Reporting by David Shepardson; Editing by Alistair Bell and Diane
Craft

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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