Things haven’t exactly been going to plan with TSMC’s Arizona chip plants, but the company is claiming that the second plant could be making 2nm chips in the US as early as 2028. Previously announced plans talked only of 3nm chips by this date.
However, the Taiwanese government acknowledges that 2nm chip production in Arizona could be delayed to 2029 or 2030 …
Arizona chip plants: The story so far
TSMC’s announcement that it was building a chip fabrication plant in Arizona was hailed as a major success for the US CHIPS Act – intended to free the US from dependence on China for advanced chip supplies, and to generate jobs for US workers. Apple proudly announced that it would be buying American-made chips for some of its devices.
The gloss soon began to wear off, however. The plant will only be able to make larger process chips, only suitable for older Apple devices, and it wasn’t long before TSMC demanded bigger subsidies and fewer rules.
The project is behind schedule, and over budget, with production already pushed into 2025, from 2024. There is talk of US-made chips costing more than those made in Taiwan, which could mean Apple would buy fewer of them than originally expected.
US job creation was first thrown into doubt when TSMC decided to bring in around 500 Taiwanese workers to speed up construction work. The battle over this quickly turned ugly, with almost half of the company’s hires being brought in from Taiwan, and US workers filing a discrimination lawsuit in response.
2nm chip production in the US
TSMC reserves its most advanced chip fabrication plants for its home base of Taiwan, with the US plants making larger-process chips for older devices.
The plan is for the Arizona plants to lag three to five years behind Taiwan, which could see them making 2nm chips by 2028. It’s believed that Apple hopes to use 2nm chips in the iPhone 17, though it’s unclear whether this will be possible.
TrendForce reports that TSMC has told the US government of its more ambitious plans, but the Taiwanese government has admitted things may not work out.
Information submitted by TSMC to the U.S. Department of Commerce reveals that the 2nm process is expected to begin production in the U.S. as early as 2028.
TSMC’s plan to produce its 2nm process in the U.S. has attracted significant attention. Addressing this development, the report highlights statements from Wu Cheng-Wen, minister of Taiwan’s National Science and Technology Council, who recently noted that the timeline for TSMC to bring 2nm technology to the U.S. is likely to fall in 2028, and it could be delayed to 2029 or 2030.
The US has granted TSMC up to $6.6B in CHIPS Act funding to support the construction of the Arizona plants. The first of these is expected to begin production of 4nm chips for older Apple devices in the first half of next year. It’s the second plant which is slated to produce 2nm chips.
Photo by Mason Field on Unsplash
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