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TSMC’s Arizona Plant Beats Taiwan Output Quality in Early Production

The company's Phoenix facility shows higher chip yields despite initial construction setbacks
Taiwan
t 2330.TW Blue Chip 150 OM 60 Semicon 75 Tech 350
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According to Bloomberg, TSMC’s first Arizona semiconductor plant is outperforming its Taiwan facilities in early production, marking a win for U.S. efforts to rebuild domestic chip manufacturing capacity.

The Phoenix plant’s usable chip yield tops comparable Taiwan facilities by 4 percentage points, according to TSMC’s U.S. division president Rick Cassidy. The results come as the chipmaker seeks US$6.6 billion in government grants and US$5 billion in loans under the Chips Act, plus 25% tax credits, to construct three fabrication plants in Arizona.

The performance metrics challenge earlier skepticism about TSMC’s ability to match its Taiwan efficiency in U.S. operations. The company faced initial hurdles in Arizona, including skilled labor shortages and worker safety concerns, which pushed the facility’s full production timeline to 2025 from 2024.

TSMC’s success contrasts with struggles at rival chipmakers Intel and Samsung, which are also central to the Biden administration’s semiconductor strategy. Intel has recently scaled back global projects amid financial pressures.

The Arizona site, currently running 4-nanometer process technology, could expand to host up to six fabrication plants. TSMC’s potential further U.S. expansion may hinge on additional government support, with early discussions of a second Chips Act already underway in Washington.

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