A TSMC facility in Arizona is close to producing its first commercial batch of advanced processor chips for Apple, marking a significant step in US efforts to build domestic semiconductor capabilities. According to Nikkei, the chips, based on 4-nanometer technology, could start rolling out this quarter after final quality verifications.
The Arizona plant is using Apple’s A16 Bionic iPhone processor as a benchmark to ensure the output matches the quality of chips made at TSMC’s main facility in Taiwan. AMD and Nvidia are also conducting test production runs at the site.
TSMC’s US$65 billion Arizona project, which expanded from an initial US$12 billion commitment, received US$6.6 billion in federal CHIPS Act subsidies. Despite early setbacks including labor shortages and permit delays, the facility now employs over 2,000 workers, including experienced engineers from Taiwan and US military veterans.
The project still faces logistical hurdles. Finished chips must return to Taiwan for advanced packaging until TSMC’s partner Amkor completes its local facility. Several chemical suppliers have also postponed their plans to build nearby plants, though some are now resuming development.
The Arizona facility’s success is crucial for TSMC’s US-based clients, who accounted for 71% of the company’s revenue in the third quarter of 2023. The chipmaker has pledged to bring even more advanced 2-nanometer technology to American soil as it expands its US presence.
