Taiwan Semiconductor Manufacturing Co. (TSMC) has reached a critical milestone at its Arizona facility, achieving production yields on par with its established plants in Taiwan, Bloomberg reported. The trial production yield at TSMC’s first U.S. advanced manufacturing plant mirrors the performance of its Tainan-based facilities, according to sources familiar with the company. TSMC began producing wafers using 4-nanometer process technology in April.
Yield rates, which measure the number of usable chips produced in a batch, are crucial for profitability. TSMC has not disclosed specific numbers but has reassured investors that it expects to maintain gross margins of 53% or more. The company’s consistent profitability has been key to its market position as a major supplier for tech giants like Apple and Nvidia.
While full-scale production at the Arizona facility was initially slated for 2024, a shortage of skilled workers has delayed the timeline to 2025. The U.S. government is supporting TSMC’s Arizona expansion with up to $6.6 billion in grants and $5 billion in loans, contributing to the company’s $65 billion investment across three planned facilities in the state.
