back to article TSMC scores $11.6B funding infusion for Arizona fabs, now plans for third plant

With a new Biden administration funding agreement in hand, chip giant TSMC plans to build a third chip fabrication plant in Arizona despite facing delays with the two it's still building. The administration announced that the Department of Commerce and TSMC's Arizona subsidiary had signed a preliminary memorandum of terms for …

  1. Pascal Monett Silver badge

    Great idea

    Yay ! Another water-guzzling plant in a place which is singularly devoid of water without the Colorado river, which just happens to be over-used and drying out due to climate change.

    What could possibly go wrong ?

    Hint : Tax breaks do not an industry make.

    1. CrackedNoggin Bronze badge

      Re: Great idea

      This is a lot more than tax breaks. Even with handouts, if those handouts come with frustrating strings and constant changes in requirements, they will be ineffective.

      [API, Feb 24, 2024] Chip giant Taiwan Semiconductor Manufacturing Co. opened Saturday in an official ceremony its first semiconductor plant in Japan as part of its ongoing global expansion. “We are deeply grateful for the seamless support provided by you at every step,” TSMC Chairman Mark Liu said after thanking the Japanese government, local community and business partners, including electronic giant Sony and auto-parts maker Denso. The company’s founder Morris Chang, was also present. The Japan Advanced Semiconductor Manufacturing, or JASM, is set to be up and running later this year. TSMC also announced plans for a second plant in Japan earlier this month, with production expected to start in about three years. Private sector investment totals $20 billion for both plants. Both plants are in the Kumamoto region, southwestern Japan.

      Where are TSMC's partners in the US? Where is the private investment? US private investment is now mostly going into the bubble part of "AI" (in quotes) and a crypto upswing, because those are offering 10-100% years returns for a short while.

    2. tony72

      Re: Great idea

      Yay ! Another water-guzzling plant [...]

      That is not exactly accurate. Intel currently recycles 100% of the water used in it's Arizona plants, so it's provably possible to do that, in which case the plants cannot fairly be characterized as "water-guzzling". From a quick search, it seems TSMC plans to recycle >90% of the water at the plants it is building, and given what Intel is doing, I see no reason to doubt that they can achieve that.

  2. cyberdemon Silver badge

    > Nevermind .. the first two plants are facing delays and costs are rising – build, build build!

    Where have I heard that before..

    A bit like Nuclear Power, Chip Fabrication is one of those industries where suddenly the politicians realise they need it and desperately throw money at it, when the country has long lost the expertise and culture required to build it..

    1. NeilPost

      Re: > Nevermind .. the first two plants are facing delays and costs are rising – build, build build!

      Are they building an airport adjacent to air-freight the chips they make to China/Indonesia/Mexico/India/Malaysia/Vietnam/Thailand for product manufacture ?

      … as it was not just the chip factories that were off-shored to the Far East ??

      The whole manufacturing and supply chain - and skills to run it - are needed.

  3. PhilipN Silver badge

    How to solve a thorny problem like Taiwan?

    Move it to Chinatown, Arizona.

    1. Anonymous Coward
      Anonymous Coward

      Re: How to solve a thorny problem like Taiwan?

      New Taipei.

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