TSMC
Native name | 台積電 | ||||||||||||||||
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Company type | Public | ||||||||||||||||
ISIN | US8740391003 | ||||||||||||||||
Industry | |||||||||||||||||
Founded | 21 February 1987Industrial Technology Research Institute, Hsinchu, Taiwan | , in||||||||||||||||
Founder | Morris Chang | ||||||||||||||||
Headquarters | , Taiwan | ||||||||||||||||
Area served | Worldwide | ||||||||||||||||
Key people | Che Chia Wei (chairman and CEO)[1] | ||||||||||||||||
Production output |
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Services |
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Revenue | US$69.30 billion (2023) | ||||||||||||||||
US$26.88 billion (2023) | |||||||||||||||||
US$30.09 billion (2023) | |||||||||||||||||
Total assets | US$169.6 billion (2023) | ||||||||||||||||
Total equity | US$112.7 billion (2023) | ||||||||||||||||
Number of employees | 76,478 (2023) | ||||||||||||||||
Divisions | SSMC (38.8% joint venture with NXP) | ||||||||||||||||
Subsidiaries |
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Chinese name | |||||||||||||||||
Traditional Chinese | 台灣積體電路製造股份有限公司 | ||||||||||||||||
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Abbreviation | |||||||||||||||||
Traditional Chinese | 台積電 | ||||||||||||||||
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Website | tsmc.com | ||||||||||||||||
Footnotes / references [2][3] |
Taiwan Semiconductor Manufacturing Company Limited (TSMC or Taiwan Semiconductor)[4][5] is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world's most valuable semiconductor company,[6] the world's largest dedicated independent ("pure-play") semiconductor foundry,[7] and its country's largest company,[8][9] with headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. Although the central government of Taiwan is the largest individual shareholder,[10] the majority of TSMC is owned by foreign investors.[11] In 2023, the company was ranked 44th in the Forbes Global 2000.[12] Taiwan's exports of integrated circuits amounted to $184 billion in 2022, accounted for nearly 25 percent of Taiwan's GDP. TSMC constitutes about 30 percent of the Taiwan Stock Exchange's main index.[13][14]
TSMC was founded in Taiwan in 1987 by Morris Chang as the world's first dedicated semiconductor foundry. It has long been the leading company in its field.[15][16] When Chang retired in 2018, after 31 years of TSMC leadership, Mark Liu became chairman and C. C. Wei became Chief Executive.[17][18] It has been listed on the Taiwan Stock Exchange since 1993; in 1997 it became the first Taiwanese company to be listed on the New York Stock Exchange. Since 1994, TSMC has had a compound annual growth rate (CAGR) of 17.4% in revenue and a CAGR of 16.1% in earnings.[19]
Most fabless semiconductor companies such as AMD, Apple, ARM, Broadcom, Marvell, MediaTek, Qualcomm, and Nvidia are customers of TSMC, as are emerging companies such as Allwinner Technology, HiSilicon, Spectra7, and UNISOC.[20] Programmable logic device companies Xilinx and previously Altera also make or made use of TSMC's foundry services.[21] Some integrated device manufacturers that have their own fabrication facilities, such as Intel, NXP, STMicroelectronics, and Texas Instruments, outsource some of their production to TSMC.[22][23] At least one semiconductor company, LSI, re-sells TSMC wafers through its ASIC design services and design IP portfolio.[dubious – discuss]
TSMC has a global capacity of about thirteen million 300 mm-equivalent wafers per year as of 2020 and produces chips for customers with process nodes from 2 microns to 3 nanometres. TSMC was the first foundry to market 7-nanometre and 5-nanometre (used by the 2020 Apple A14 and M1 SoCs, the MediaTek Dimensity 8100, and AMD Ryzen 7000 series processors) production capabilities, and the first to commercialize ASML's extreme ultraviolet (EUV) lithography technology in high volume.
History
[edit]In 1986, Li Kwoh-ting, representing the Executive Yuan, invited Morris Chang to serve as the president of the Industrial Technology Research Institute (ITRI) and offered him a blank check to build Taiwan's chip industry. At that time, the Taiwanese government wanted to develop its semiconductor industry, but its high investment and high risk nature made it difficult to find investors. Texas Instruments and Intel turned down Chang. Only Philips was willing to sign a joint venture contract with Taiwan to put up $58 million, transfer its production technology, and license intellectual property in exchange for a 27.5 percent stake in TSMC. Alongside generous tax benefits, the Taiwanese government, through the National Development Fund, Executive Yuan, provided another 48 percent of the startup capital for TSMC, and the rest of the capital was raised from several of the island's wealthiest families, who owned firms that specialized in plastics, textiles, and chemicals. These wealthy Taiwanese were directly "asked" by the government to invest. "What generally happened was that one of the ministers in the government would call a businessman in Taiwan," Chang explained, "to get him to invest." From day one, TSMC was not really a private business: it was a project of the Taiwanese state.[24][25][26] Its first CEO was James E. Dykes, who left after a year and Morris Chang became the CEO.[27]
Since then, the company has continued to grow, albeit subject to the cycles of demand. In 2011, the company planned to increase research and development expenditures by almost 39% to NT$50 billion to fend off growing competition.[28] The company also planned to expand capacity by 30% in 2011 to meet strong market demand.[29] In May 2014, TSMC's board of directors approved capital appropriations of US$568 million to increase and improve manufacturing capabilities after the company forecast higher than expected demand.[30] In August 2014, TSMC's board of directors approved additional capital appropriations of US$3.05 billion.[31]
In 2011, it was reported that TSMC had begun trial production of the A5 SoC and A6 SoCs for Apple's iPad and iPhone devices.[32][33] According to reports,[34] in May 2014 Apple sourced its A8 and A8X SoCs from TSMC.[35][36] Apple then sourced the A9 SoC with both TSMC and Samsung (to increase volume for iPhone 6S launch) and the A9X exclusively with TSMC, thus resolving the issue of sourcing a chip in two different microarchitecture sizes. As of 2014, Apple was TSMC's most important customer.[36][37] In October 2014, ARM and TSMC announced a new multi-year agreement for the development of ARM based 10 nm FinFET processors.[38]
In 2020, TSMC became the first semiconductor company in the world to sign up for the RE100 initiative, pledging to use 100% renewable energy by 2050.[39] TSMC accounts for roughly 5% of the energy consumption in Taiwan, even exceeding that of the capital city Taipei. This initiative was thus expected to accelerate the transformation to renewable energy in the country.[40] For 2020, TSMC had a net income of US$17.60 billion on a consolidated revenue of US$45.51 billion, an increase of 57.5% and 31.4% respectively from the 2019 level of US$11.18 billion net income and US$34.63 billion consolidated revenue.[41] Its market capitalization was over $550 billion in April 2021. TSMC's revenue in the first quarter of 2020 reached US$10 billion,[42] while its market capitalization was US$254 billion.[43] TSMC's market capitalization reached a value of NT$1.9 trillion (US$63.4 billion) in December 2010.[44] It was ranked 70th in the FT Global 500 2013 list of the world's most highly valued companies with a capitalization of US$86.7 billion,[45] while reaching US$110 billion in May 2014.[43] In March 2017, TSMC's market capitalization surpassed that of semiconductor giant Intel for the first time, hitting NT$5.14 trillion (US$168.4 billion), with Intel's at US$165.7 billion.[46] On 27 June 2020, TSMC briefly became the world's 10th most valuable company, with a market capitalization of US$410 billion.[47]
As the risk of a war between Taiwan and the People's Republic of China increases, TSMC and its investors have explored options to mitigate the consequences of such an event. Since the beginning of the 2020s, TSMC has expanded its operations outside of the island of Taiwan, opening new fabs in Japan and the United States, with further plans for expansion into Germany.[48] In July 2020, TSMC confirmed it would halt the shipment of silicon wafers to Chinese telecommunications equipment manufacturer Huawei and its subsidiary HiSilicon by 14 September.[49][50] In November 2020, officials in Phoenix, Arizona in the United States approved TSMC's plan to build a $12 billion chip plant in the city. The decision to locate a plant in the US came after the Trump administration warned about the issues concerning the world's electronics made outside of the U.S.[51] In 2021, news reports claimed that the facility might be tripled to roughly a $35 billion investment with six factories.[52] See TSMC § Arizona for more details.
In June 2021, following nearly a year of public controversy surrounding its COVID-19 vaccine shortage,[53][54][55][56] with only about 10% of its 23.5 million population vaccinated;[53] Taiwan agreed to allow TSMC and Foxconn to jointly negotiate purchasing COVID-19 vaccines on its behalf.[55][53] In July 2021, BioNTech's Chinese sales agent Fosun Pharma announced that the two technology manufacturers had reached an agreement to purchase 10 million BioNTech COVID-19 vaccines from Germany.[55][53] TSMC and Foxconn pledged to each buy five million doses for up to $175 million,[55] for donation to Taiwan's vaccination program.[53]
Due to the 2020–2023 global semiconductor shortage, Taiwanese competitor United Microelectronics raised prices approximately 7–9 percent, and prices for TSMC's more mature processors will be raised by about 20 percent.[57] In November 2021, TSMC and Sony announced that TSMC would be establishing a new subsidiary named Japan Advanced Semiconductor Manufacturing (JASM) in Kumamoto, Japan. The new subsidiary will manufacture 22- and 28-nanometer processes. The initial investment will be approximately $7 billion, with Sony investing approximately $500 million for a less than 20% stake. Construction of the fabrication plant is expected to start in 2022, with production targeted to begin two years later in 2024.[58][59]
In February 2022, TSMC, Sony Semiconductor Solutions, and Denso announced that Denso would take a more than 10% equity stake in JASM with a US$0.35 billion investment, amid a scarcity of chips for automobiles.[60][61][62] TSMC will also enhance JASM's capabilities with 12/16 nanometer FinFET process technology in addition to the previously announced 22/28 nanometer process and increase monthly production capacity from 45,000 to 55,000 12-inch wafers.[60][61][62] The total capital expenditure for JASM's Kumamoto fab is estimated to be approximately US$8.6 billion.[60][61][62] The Japanese government wants JASM to supply essential chips to Japan's electronic device makers and auto companies as trade friction between the United States and China threatens to disrupt supply chains.[60][61][62] The fab is expected to directly create about 1,700 high-tech professional jobs.[60][61]
In July 2022, TSMC announced the company had posted a record profit in the second quarter, with net income up 76.4 percent year-over-year. The company saw steady growth in the automotive and data center sectors with some weakness in the consumer market. Some of the capital expenditures are projected to be pushed up to 2023.[63] In the third quarter of 2022, Berkshire Hathaway disclosed purchase of 60 million shares in TSMC, acquiring a $4.1 billion stake, making it one of its largest holdings in a technology company.[64] However, Berkshire sold off 86.2% of its stake by the next quarter citing geopolitical tensions as a factor.[65][66] In February 2024, TSMC shares hit a record high, with the high on the trading day reaching NT$709 and closing at NT$697 (+8%). This was influenced by the increase in the price target on chip designer Nvidia. TSMC currently manufactures 3-nanometer chips and plans to start 2-nanometer mass production in 2025.[67] It is included in the FTSE4Good Index, being the only Asian company in the top ten.[68]
In October 2024, TSMC informed the United States Department of Commerce about a potential breach of export controls in which one of its most advanced chips was sent to Huawei via another company with ties to the Chinese government.[69][70][71]
Patent dispute with GlobalFoundries
[edit]On 26 August 2019, GlobalFoundries filed several patent infringement lawsuits against TSMC in the US and Germany claiming that TSMC's 7 nm, 10 nm, 12 nm, 16 nm, and 28 nm nodes infringed 16 of their patents.[72] GlobalFoundries named twenty defendants.[73] TSMC said that they were confident that the allegations were baseless.[74] On 1 October 2019, TSMC filed patent infringement lawsuits against GlobalFoundries in the US, Germany and Singapore, claiming that GlobalFoundries' 12 nm, 14 nm, 22 nm, 28 nm and 40 nm nodes infringed 25 of their patents.[75] On 29 October 2019, TSMC and GlobalFoundries announced a resolution to the dispute, agreeing to a life-of-patents cross-license for all of their existing semiconductor patents and new patents for the next 10 years.[76][77][78][79][80]
Corporate affairs
[edit]Senior leadership
[edit]List of former chairmen
[edit]- Morris Chang (1987–2018)
- Mark Liu (2018–2024)[81]
List of former chief executives
[edit]- Morris Chang (1987–2005)
- Rick Tsai (2005–2009)
- Morris Chang (2009–2013); second term
- C. C. Wei and Mark Liu (2013–2018); co-CEO's[81]
Business trends
[edit]The key trends for TSMC are (as of the financial year ending December 31):[82][83][84]
Revenue (NT$ tr) |
Net profit (NT$ bn) |
Employees (k)[85] | |
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2014 | 0.76 | 263 | 43.5 |
2015 | 0.84 | 306 | 45.2 |
2016 | 0.94 | 334 | 46.9 |
2017 | 0.97 | 343 | 48.6 |
2018 | 1.0 | 351 | 48.7 |
2019 | 1.0 | 345 | 51.2 |
2020 | 1.3 | 517 | 56.8 |
2021 | 1.5 | 596 | 65.1 |
2022 | 2.2 | 1,016 | 73.0 |
2023 | 2.1 | 838 | 76.4 |
TSMC and the rest of the foundry industry are exposed to the cyclical industrial dynamics of the semiconductor industry. TSMC must ensure its production capacity to meet strong customer demand during upturns; however, during downturns, it must contend with excess capacity because of weak demand and the high fixed costs associated with its manufacturing facilities.[86] As a result, the company's financial results tend to fluctuate with a cycle time of a few years. This is more apparent in earnings than revenues because of the general trend of revenue and capacity growth. TSMC's business has generally also been seasonal, with a peak in Q3 and a low in Q1.
In 2014, TSMC was at the forefront of the foundry industry for high-performance, low-power applications,[87][88] leading major smartphone chip companies, such as Qualcomm,[89][90] Mediatek,[90][91] and Apple,[35][37] to place an increasing amount of orders.[87] While the competitors in the foundry industry (primarily GlobalFoundries and United Microelectronics Corporation) have encountered difficulties ramping leading-edge 28 nm capacity,[91] the leading Integrated Device Manufacturers such as Samsung and Intel that seek to offer foundry capacity to third parties were also unable to match the requirements for advanced mobile applications.[88]
For most of 2014, TSMC saw a continuing increase in revenues due to increased demand, primarily due to chips for smartphone applications. TSMC raised its financial guidance in March 2014 and posted 'unseasonably strong' first-quarter results.[30][92] For Q2 2014, revenues came in at NT$183 billion, with 28 nm technology business growing more than 30% from the previous quarter.[93] Lead times for chip orders at TSMC increased due to a tight capacity situation, putting fabless chip companies at risk of not meeting their sales expectations or shipment schedules,[94] and in August 2014 it was reported that TSMC's production capacity for the fourth quarter of 2014 was already almost fully booked, a scenario that had not occurred for many years, which was described as being due to a ripple-effect due to TSMC landing CPU orders from Apple.[95]
However, monthly sales for 2014 peaked in October, decreasing by 10% in November due to cautious inventory adjustment actions taken by some of its customers.[96] TSMC's revenue for 2014 saw growth of 28% over the previous year, while TSMC forecasted that revenue for 2015 would grow by 15 to 20 percent from 2014, thanks to strong demand for its 20 nm process, new 16 nm FinFET process technology as well as continuing demand for 28 nm, and demand for less advanced chip fabrication in its 200mm fabs.[96]
Ownership
[edit]Around 56% of TSMC shares are held by the general public and around 38% are held by institutions. The largest shareholders in early 2024 were:[97]
- National Development Fund, Executive Yuan (6.38%)
- BlackRock (5.09%)
- Capital Research and Management Company (3.61%)
- Government of Singapore Investment Corporation (3.32%)
- Norges Bank (1.59%)
- Fidelity Investments (1.37%)
- New Labor Pension Scheme (1.28%)
- The Vanguard Group (1.26%)
- Yuanta Securities Investment (1.02%)
- JPMorgan Chase (0.83%)
- Fidelity International (0.8%)
- Baillie Gifford (0.76%)
- Fubon Life Insurance (0.75%)
- Invesco (0.63%)
Technologies
[edit]TSMC's N7+ is the first commercially available extreme-ultraviolet lithographic process in the semiconductor industry.[98] It uses ultraviolet patterning and enables more acute circuits to be implemented on the silicon. N7+ offers a 15–20% higher transistor density and 10% reduction in power consumption than previous technology.[99][100] The N7 achieved the fastest ever volume time to market, faster than 10 nm and 16 nm.[101] The N5 iteration doubles transistor density and improves performance by an additional 15%.[102][103]
Production capabilities
[edit]On 300 mm wafers, TSMC has silicon lithography on node sizes:
- 0.13 μm (130 nm, options: general-purpose (G), low-power (LP), high-performance low-voltage (LV))
- 90 nm (based upon 80GC from Q4/2006)
- 65 nm (options: general-purpose (GP), low-power (LP), ultra-low power (ULP, LPG)
- 55 nm (options: general-purpose (GP), low-power (LP)
- 40 nm (options: general-purpose (GP), low-power (LP), ultra-low power (ULP)[104]
- 28 nm (options: high-performance (HP), high-performance mobile (HPM), high-performance computing (HPC), high-performance low-power (HPL), low-power (LP), high-performance computing Plus (HPC+), ultra-low power (ULP) with HKMG[105]
- 22 nm (options: ultra-low power (ULP), ultra-low leakage (ULL)[106]
- 20 nm[107]
- 16 nm (options: FinFET (FF), FinFET Plus (FF+), FinFET Compact (FFC)[108]
- 12 nm (options: FinFET Compact (FFC), FinFET Nvidia (FFN)), enhanced version of 16 nm process[109]
- 10 nm (options: FinFET (FF)[110]
- 7 nm (options: FinFET (FF), FinFET Plus (FF+), FinFET Pro (FFP), high-performance computing (HPC)[111]
- 6 nm (options: FinFET (FF), risk production started in Q1 2020, enhanced version of 7 nm process[112]
- 5 nm (options: FinFET (FF)
- 4 nm (options: FinFET (FF), risk production started in 2021, enhanced version of 5 nm process
- 3 nm (options: FinFET (FF), volume production started in Q4 2022[113]
It also offers "design for manufacturing" (DFM) customer services.[114] In press publications, these processes will often be referenced, for example, for the mobile variant, simply by 7nmFinFET or even more briefly by 7FF. At the beginning of 2019, TSMC was advertising N7+, N7, and N6 as its leading edge technologies.[112] As of June 2020, TSMC is the manufacturer selected for production of Apple's 5 nanometer ARM processors, as "the company plans to eventually transition the entire Mac lineup to its Arm-based processors, including the priciest desktop computers".[115] In July 2020, TSMC signed a 20-year deal with Ørsted to buy the entire production of two offshore wind farms under development off Taiwan's west coast. At the time of its signing, it was the world's largest corporate green energy order ever made.[116] In July 2021, both Apple and Intel were reported to be testing their proprietary chip designs with TSMC's 3 nm production.[117]
Facilities
[edit]Name | Location | Category | Remarks |
---|---|---|---|
Fab 2 | Hsinchu (24°46′25″N 120°59′55″E / 24.77361°N 120.99861°E) |
150 mm wafer | |
Fab 3 | Hsinchu (24°46′31″N 120°59′28″E / 24.77528°N 120.99111°E) |
200 mm wafer | |
Fab 5 | Hsinchu (24°46′25″N 120°59′55″E / 24.77361°N 120.99861°E) |
200 mm wafer | |
Fab 6 | Shanhua District (23°06′36.2″N 120°16′24.7″E / 23.110056°N 120.273528°E) |
200 mm wafer | phases 1 & 2 operational |
Fab 8 | Hsinchu (24°45′44″N 121°01′11″E / 24.76222°N 121.01972°E) |
200 mm wafer | |
Fab 10 | Songjiang, Shanghai (31°2′7.6″N 121°9′33″E / 31.035444°N 121.15917°E) |
200 mm wafer | TSMC China Company Limited |
Fab 11 | Camas, Washington (45°37′7.7″N 122°27′20″W / 45.618806°N 122.45556°W) |
200 mm wafer | WaferTech L.L.C.; 100% TSMC |
Fab 12A | Hsinchu (24°46′24.9″N 121°0′47.2″E / 24.773583°N 121.013111°E) |
300 mm wafer | phases 1, 2, 4–7 operational, phase 8 under construction, and phase 9 planned TSMC head office |
Fab 12B | Hsinchu (24°46′37″N 120°59′35″E / 24.77694°N 120.99306°E) |
300 mm wafer | TSMC R&D Center, phase 3 operational |
Fab 14 | Shanhua District (23°06′46.2″N 120°16′26.9″E / 23.112833°N 120.274139°E) |
300 mm wafer | phases 1–7 operational, phase 8 under construction |
Fab 15 | Taichung (24°12′41.3″N 120°37′2.4″E / 24.211472°N 120.617333°E) |
300 mm wafer | phases 1–7 operational |
Fab 16 | Nanjing, Jiangsu (31°58′33″N 118°31′59″E / 31.97583°N 118.53306°E) |
300 mm wafer | TSMC Nanjing Company Limited |
Fab 18 | Anding District, Tainan (23°07′05″N 120°15′45″E / 23.11806°N 120.26250°E) |
300 mm wafer | phases 1–8 operational |
Fab 20 | Hsinchu (24°45′51″N 121°0′10″E / 24.76417°N 121.00278°E) |
300 mm wafer | planned in 4 phases |
Fab 21 | Phoenix, Arizona (33°46′30″N 112°09′30″W / 33.77500°N 112.15833°W) |
300 mm wafer | phase 1 under construction, opening projected for the end of 2024; phase 2 under construction, opening projected for the end of 2026 |
Fab 22 | Kaohsiung (22°42′35″N 120°18′44″E / 22.70972°N 120.31222°E) |
300 mm wafer | 3 phases planned; phase 1 under construction |
JASM (Fab 23) |
Kumamoto (Japan) (32°53′8″N 130°50′33″E / 32.88556°N 130.84250°E) |
300 mm wafer | Japan Advanced Semiconductor Manufacturing, Inc. joint venture founded by TSMC (70%), SSSC (20%), and Denso (10%) |
SSMC | Singapore (1°22′58″N 103°56′5.7″E / 1.38278°N 103.934917°E) |
200 mm wafer | Systems on Silicon Manufacturing Cooperation, 1998 founded as joint venture by TSMC, Philips Semiconductors (now NXP Semiconductors), and EDB Investments, Singapore. In November 2006 EDB left the joint venture and TSMC raised their stake in SSMC to 38.8%, NXP to 61.2%. |
Advanced Backend Fab 1 | Hsinchu (24°46′39.6″N 120°59′28.9″E / 24.777667°N 120.991361°E) |
Backend | |
Advanced Backend Fab 2 | Shanhua District (23°06′46.2″N 120°16′26.9″E / 23.112833°N 120.274139°E) |
Backend | AP2B and AP2C operational |
Advanced Backend Fab 3 | Longtan District, Taoyuan (24°53′01″N 121°11′11″E / 24.883541°N 121.186478°E) |
Backend | |
Advanced Backend Fab 5 | Taichung (24°12′52.9″N 120°37′05.1″E / 24.214694°N 120.618083°E) |
Backend | |
Advanced Backend Fab 6 | Zhunan (24°42′25″N 120°54′26″E / 24.70694°N 120.90722°E) |
Backend | planned in 3 phases, AP6A operational, phases B & C under construction |
Advanced Backend Fab 7 | Taibo City, Chiayi County (23°28′27.1″N 120°18′05.9″E / 23.474194°N 120.301639°E) |
Backend | planned in 2 phases |
Arizona
[edit]In 2020, TSMC announced a planned fab in Phoenix, Arizona, intended to begin production by 2024 at a rate of 20,000 wafers per month. As of 2020, TSMC announced that it would bring its newest 5 nm process to the Arizona facility, a significant break from its prior practice of limiting US fabs to older technologies. The Arizona plant was estimated to not be fully operational until 2024, when the 5 nm process is projected to be replaced by TSMC's 3 nm process as the latest technology.[118] At launch it will be the most advanced fab in the United States.[119] TSMC plans to spend $12 billion on the project over eight years, beginning in 2021.[118] TSMC claimed the plant will create 1,900 full-time jobs.[120]
In December 2022, TSMC announced its plans to triple its investment in the Arizona plants in response to the growing tensions between the US and China and the supply chain disruption that has led to chip shortages.[121] In that same month, TSMC stated that they were running into major cost issues, because the cost of construction of buildings and facilities in the US is four to five times what an identical plant would cost in Taiwan, (due to higher costs of labor, red tape, and training), as well as difficulty finding qualified personnel (for which it has hired US workers and sent them for training in Taiwan for 12–18 months.) These additional production costs will increase the cost of TSMC's chips made in the US to at least 50% more than the cost of chips made in Taiwan.[122][123][124] In July 2023 TSMC warned that US talent was insufficient, so Taiwanese workers will need to be brought in for a limited time, and that the chip factory won't be operational until 2025.[125] In September 2023, an analyst said the chips will still need to be sent back to Taiwan for packaging.[126] In January 2024, TSMC chairman Liu again warned that Arizona lacked workers with the specialized skills to hire and that TSMC's second Arizona plant likely won't start volume production of advanced chips until 2027 or 2028.[127]
In April 2024, the US Commerce Department agreed to provide $6.6 billion in direct funding and up to $5 billion in loans to TSMC for the purposes of creating semiconductor manufacturing facilities in Arizona. This action falls under the CHIPS and Science Act and is intended to boost domestic chip production for the USA.[128]
Central Taiwan Science Park
[edit]The investment of US$9.4 billion to build its third 300mm wafer fabrication facility in Central Taiwan Science Park (Fab 15) was originally announced in 2010.[129] The facility was expected to manufacture over 100,000 wafers a month and generate US$5 billion per year of revenue.[130] TSMC has continued to expand advanced 28 nm manufacturing capacity at Fab 15.[131] On 12 January 2011, TSMC announced the acquisition of land from Powerchip Semiconductor for NT$2.9 billion (US$96 million) to build two additional 300mm fabs (Fab 12B) to cope with increasing global demand.[132]
WaferTech subsidiary
[edit]WaferTech, a subsidiary of TSMC, is a pure-play semiconductor foundry based in Camas, Washington, 32 km (20 mi) outside Portland, Oregon. The WaferTech campus contains a 9.3 ha (23 acres) complex housed on 105 ha (260 acres), with a main fabrication facility consisting of a 12,000 m2 (130,000 sq ft) 200mm wafer fabrication plant.[133] The site is the second-largest pure-play foundry in the United States, employing 1,100 workers.[citation needed] The largest is GlobalFoundries Fab 8 in Malta, New York, which employs over 3,000 workers with over 278,709 m2 (3,000,000 sq ft) under one roof.[citation needed] As of 2024, the facility supports node sizes of 0.35, 0.30, 0.25, 0.22, 0.18, and 0.16 micrometers, with an emphasis on embedded flash process technology.[134]
History
[edit]WaferTech was established in June 1996 as a joint venture with TSMC, Altera, Analog Devices, and ISSI as key partners. The four companies and minor individual investors placed US$1.2 billion into this venture, which was at the time the single largest startup investment in the state of Washington. The company started production in July 1998 in its 200mm semiconductor fabrication plant. Its first product was a 0.35 micrometer part for Altera.[citation needed] TSMC bought out the joint venture partners in 2000 and acquired full control, operating it as a fully owned subsidiary.[135] In 2015, Tsung Kuo was named company president and fab director of WaferTech.[136]
Japan
[edit]In November 2021, TSMC and Sony announced that TSMC would be establishing a new subsidiary named Japan Advanced Semiconductor Manufacturing (JASM) in Kumamoto, Japan. The new subsidiary will manufacture 22- and 28-nanometer processes. The initial investment will be approximately $7 billion, with Sony investing approximately $500 million for a less than 20% stake. Construction of the fabrication plant is expected to start in 2022, with production targeted to begin two years later in 2024
Germany
[edit]In August 2023, TSMC committed €3.5 billion to a €10+ billion factory in Dresden, Germany. The plant is subsidised with €5 billion from the German government. Three European companies (Robert Bosch GmbH, Infineon Technologies, and NXP Semiconductors) invested in the plant in return for a 10% share each. The resulting joint venture with TSMC is named European Semiconductor Manufacturing Company (ESMC).[137][138][139][140] The factory is planned to be fully operational in 2029 with a monthly capacity of 40,000 12-inch wafers.[141]
See also
[edit]References
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Even in semiconductors, the ultra-high-tech industry where the U.S. and its allies must maintain leadership in order to maintain their edge over China, the U.S. can't seem to build much. TSMC, the Taiwanese company that recently agreed to build a big plant in Arizona, is running into major cost issues:
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External links
[edit]- Official website
- Business data for TSMC:
- Electronics companies established in 1987
- Taiwanese companies established in 1987
- 1993 initial public offerings
- Manufacturing companies based in Hsinchu
- Companies listed on the Taiwan Stock Exchange
- Electronics companies of Taiwan
- Semiconductor companies of Taiwan
- Foundry semiconductor companies
- Taiwanese brands
- Technology companies of Taiwan
- Companies listed on the New York Stock Exchange
- Computer companies of Taiwan
- Computer hardware companies
- Companies in the Taiwan Capitalization Weighted Stock Index
- Companies in the Dow Jones Global Titans 50
- Companies in the S&P Asia 50