TSMC Begins Production of 4nm Chips in Arizona, Achieving Taiwan-Quality Yields; 5% to 10% Price Increase Expected

Jan 11, 2025, 03:46 PM

Taiwan Semiconductor Manufacturing Company (TSMC) has commenced production of advanced 4-nanometer chips at its facility in Phoenix, Arizona. Commerce Secretary Gina Raimondo confirmed that these chips are achieving yields and quality comparable to those produced in Taiwan. This development marks a significant milestone for TSMC, as it is the first time 4nm chips are being manufactured in the United States. The Arizona Fab 21 is expected to enhance semiconductor capacity and competition in the region. Looking ahead, TSMC plans to begin production of 2-nanometer technology in Arizona by 2028, with additional production of the 'A16' chip also planned. Amid rising demand, TSMC is projected to increase prices for advanced nodes by 5% to 10% in 2025, partly due to elevated manufacturing costs at its Arizona facility.