TSMC chip production in Phoenix ahead of schedule as company posts $11.5B profit

Article originally posted on AZ Central on January 16, 2025

The company building a massive semiconductor complex in Arizona ended 2024 on a strong financial footing and confirmed it has already launched its much-anticipated commercial production at the north Phoenix site, ahead of schedule.

“We were able to pull ahead the production schedule of our first fab in Arizona,” said Dr. C.C. Wei, the CEO and chairman of Taiwan Semiconductor Manufacturing Co. He spoke during an earnings call on Thursday

The company said it earned a profit of around $11.5 billion in the fourth quarter ending Dec. 31 on revenue of $26.9 billion.

Commercial production at the Arizona fab or factory was widely expected to start in early 2025. However, the company began high-volume output during the fourth quarter of 2024 using advanced 4-nanometer technology, with yields or results comparable to that achieved by its fabs in Taiwan, Wei said.

The semiconductor technology now being used by TSMC in Phoenix is the most sophisticated on U.S. soil.

The company considers microscopic semiconductors of seven nanometers or smaller to be its most advanced. Around 80,000 to 100,000 nanometers would fit into a human hair, with a nanometer defined as one-billionth of a meter.

Wei cited “strong commitment and support from our U.S. customers” and from federal, Arizona and Phoenix officials for helping the company make substantial progress.

“We expect a smooth ramp-up process, and with our strong manufacturing capability and execution, we are confident (we can) deliver the same level of manufacturing quality and reliability from our fab in Arizona, as from our fabs in Taiwan,” he added.

TSMC currently employs around 2,200 people in Phoenix with more jobs planned as it expands, in addition to construction positions. The company expects to employ 6,000 people by the end of the decade.

Wei said TSMC’s plans for its second and third fabs at the north Phoenix site “are also on track.” These factories, he said, “will utilize even more advanced technologies” including those on a scale of 2 and 3 nanometers.

“Thus, TSMC will continue to play a critical and integral role in enabling our customers’ success, while remaining a key partner and enabler of the U.S. semiconductor industry,” Wei said.

Large-scale commercial production by TSMC in Phoenix marks an important threshold in a relationship between the company and city, state and federal officials that began more than a decade ago. And at $65 billion, the company’s three-fab complex near Dove Valley Road and 43rd Avenue marks the largest direct foreign investment in the U.S.

The update on the Arizona factories came during the earnings report when TSMC said its net income for the fourth quarter ended Dec. 31 vaulted 57% on a 38.8% jump in revenue, reflecting rising demand for its smallest and most advanced products.

“Our business in the fourth quarter was supported by strong demand for our industry-leading 3 nm and 5 nm technologies,” said Wendell Huang, TSMC’s senior vice president and chief financial officer. He also cited continued steady demand for semiconductors used in artificial-intelligence applications.

 

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