Taiwan Semiconductor Manufacturing Co (TSMC) has officially started producing advanced four-nanometer chips at its Arizona facility, marking a significant milestone in the U.S. semiconductor industry. U.S. Commerce Secretary Gina Raimondo revealed the news, calling it a historic achievement for the United States, which now manufactures cutting-edge chips on American soil for the first time.
This breakthrough follows TSMC’s $6.6 billion grant from the U.S. Department of Commerce to bolster semiconductor production in Phoenix, Arizona. Raimondo emphasized the importance of this development, noting that the chips produced are on par with Taiwan’s high-quality standards in both yield and performance. She highlighted the achievement as one that many doubted could happen, marking a critical moment in the U.S. push for domestic semiconductor production.
TSMC, the world’s leading contract chipmaker and a key supplier for tech giants like Apple and Nvidia, has yet to publicly comment on the start of production. However, this move comes after TSMC’s agreement in April to significantly expand its Arizona operations. The company plans to invest an additional $40 billion, bringing its total investment to $65 billion, and will build a third fabrication plant by 2030.
This production milestone is part of the broader $52.7 billion U.S. initiative to boost semiconductor manufacturing and research within the country. Raimondo revealed that convincing TSMC to expand its U.S. plans was no easy feat, and significant negotiations were required.
Looking ahead, TSMC intends to produce even more advanced chips, including two-nanometer technology, at its second Arizona fab, scheduled for 2028. By then, the company plans to use its most advanced “A16” chip manufacturing technology in the U.S. as part of this expansion. The U.S. government has also supported TSMC’s efforts with up to $5 billion in low-interest loans.
Raimondo’s goal is for the U.S. to produce 20% of the world’s leading-edge logic chips by 2030, a dramatic increase from its current share of zero. TSMC expects to begin high-volume production in its first U.S. fab by the first half of 2025.
Additionally, in a related development, the Commerce Department awarded $407 million to support Amkor Technology’s $2 billion advanced semiconductor packaging facility in Arizona. This facility, set to be the largest of its kind in the U.S., will focus on packaging and testing chips for industries such as autonomous vehicles, 5G/6G, and data centers, with Apple expected to be its first major customer.