Riley Loftus’ Post

https://lnkd.in/duUCJfcz TSMC’s Arizona Chip Production Yields Surpass Taiwan’s in Win for US Push Production yields in Arizona are 4 percentage points higher The Phoenix plant began trial production earlier this year By Mackenzie Hawkins October 24, 2024 at 9:23 PM GMT+2 Taiwan Semiconductor Manufacturing Co. has achieved early production yields at its first plant in Arizona that surpass similar factories back home, a significant breakthrough for a US expansion project initially dogged by delays and worker strife. The share of chips manufactured at TSMC’s facility in Phoenix that are usable is about 4 percentage points higher than comparable facilities in Taiwan, Rick Cassidy, president of TSMC’s US division, told listeners on a webinar Wednesday, according to a person who participated. The success rate, or yield, is a critical measure in the semiconductor industry because it determines whether companies will be able to cover the enormous costs of a chip plant.

TSMC's Arizona Plant Outshines Taiwan with Record Production Yields 🌟 Taiwan Semiconductor Manufacturing Company (TSMC) has hit a significant milestone at its first plant in Arizona, achieving early production yields that are 4 percentage points higher than similar facilities in Taiwan. This accomplishment comes after initial delays and worker strife, marking a crucial step in TSMC's U.S. expansion efforts. Rick Cassidy, president of TSMC's U.S. division, shared this exciting news during a recent webinar. The success rate, or yield, is a critical metric in the semiconductor industry, as it determines whether companies can recover the enormous costs associated with operating a chip plant. Higher yields from the Phoenix facility are a promising sign for the future of American semiconductor manufacturing, especially as the U.S. aims to reduce dependence on foreign production. Government Support on the Horizon💰 TSMC stands to receive $6.6 billion in government grants and $5 billion in loans, along with 25% tax credits to establish three fabrication facilities (fabs) in Arizona. While these awards are significant, they are not yet finalized under the 2022 Chips and Science Act. Why Does This Matter? Boosting U.S. Chip Production: TSMC's higher yields bolster local manufacturing, addressing supply chain vulnerabilities. Economic Impact: Successful yields can enhance profitability and position TSMC favorably against competitors in the semiconductor market. Strengthening Supply Chains: This development aligns with national goals for a more secure tech infrastructure. 🔍 Looking Ahead TSMC's Arizona plant began engineering wafer production with cutting-edge 4-nanometer process technology in April, achieving “very good yields.” This operational success showcases TSMC's manufacturing capabilities and sets a strong foundation for the company’s future endeavors. 𝗿𝗲𝗽𝗼𝘀𝘁 | if you found it helpful. 𝗹𝗶𝗸𝗲 | if you enjoyed the post. How do you view TSMC's expansion to Arizona? As of now over 80% of the TSMC's production capacity is in Taiwan. Source: Bloomberg #TSMC #Semiconductors #TechNews #ChipProduction #Innovation https://lnkd.in/dMRxEDkw

Rumors have been circulating that TSMC's manufacturing costs in the US are at least 30% higher than in Taiwan. Now it seems that a price hike is inevitable, as a new report suggests TSMC plans to raise prices for advanced nodes by 5% to 10% in '25. https://lnkd.in/gprdtzcs

Atop a newly-completed, 3.5-million-square-foot building that stands on 1,100 acres in the Arizona desert north of Phoenix is a giant logo of a microchip wafer and the letters TSMC. TSMC’s first Arizona chip fabrication plant, or fab, is making history because it’s the most advanced chip fab on U.S. soil, and Apple has committed to being the site’s largest customer. CNBC first visited the fab in 2021, not long after TSMC broke ground. TSMC initially announced the plant would cost $12 billion and pump out 5-nanometer chips by the end of 2024. Three years later, that price tag has soared to $20 billion and full production is delayed until 2025. Instead, the fab is in pilot production, making sample wafers and sending them to customers for verification. TSMC has committed to building two more fabs on the site by the end of the decade, for a total investment of $65 billion. #cnbc #tech #chips #tsmc #apple

TSMC’s Arizona chip yields outpacing Taiwan’s is a pivotal moment for #CHIPSAct markets like #Phoenix and #Austin, transforming them into high-tech hubs. Demand for #AI and #DataCenters drives growth, creating a ripple effect across ancillary properties in these areas. As CMBS lenders, we at #LMF see unique investment opportunities in these tech-driven real estate markets, capitalizing on the momentum of semiconductor manufacturing returning to the U.S. #CMBS #RealEstate #Semiconductors #TechJobs #USManufacturing

What allows TSMC to be better at manufacturing chips than their competitors? In the clip below, taken from our recent semiconductor market fireside chat, Research Analyst zihan Zhang highlighted that not only does TSMC have the dominating market share of the foundry business for chip manufacturing, but they also achieve a lower failure rate than many of their competitors too. Zoe then discusses what it is about the world's largest chip manufacturer that allows them to do this. For the full video, click here: https://bit.ly/4a8WOtb Other topics covered include: • An overview of the semiconductor supply chain, the fabrication process and technology distinguishers • Globalisation vs Repatriation: how the semiconductor industry is grappling with its fundamental logistics • The talent shortage, new fabs new facilities and new financing need to draw in people to operate them – is there enough supply? • A new wave of semiconductor legislation – what have the critical acts passed achieved? #Semiconductor #SemiconductorLegislation #SemiconductorSupplyChain #Chips #RhoMotion

This is an insightful read on how onshoring laborious industries is easier said than done. We may think TSMC production is easily replicable in the US, but will entitled US culture embrace the work ethic typical in offshore semiconductor manufacturing? https://lnkd.in/guib6_zt.

💰 As 2024 ends, a price hike on cutting-edge semiconductors in 2025 is already on the way, reportedly launched by TSMC! 📈 The foundry giant reportedly plans to raise advanced node prices by up to 10%, which could be attributed to higher manufacturing costs, strong demand amid tight capacity, and potential policy changes under President-elect Trump. 💡More: https://buff.ly/4iQ8Hd3 🔗 #TSMC #pricehike #Arizona

The Potomac Institute for Policy Studies recently hosted Mr. Rick Cassidy of TSMC during our monthly Semiconductor Industry Voices: Perspectives from Industry Leaders webinar. The session highlighted a significant win for TSMC in advancing US chip manufacturing, with its Arizona plant achieving higher production yields than comparable facilities in Taiwan. Following the webinar, Bloomberg focused on one of the event's primary takeaways in an article:   "Taiwan Semiconductor Manufacturing Co. has achieved early production yields at its first plant in Arizona that surpass similar factories back home, a significant breakthrough for a US expansion project initially dogged by delays and worker strife.    The share of chips manufactured at TSMC’s facility in Phoenix that are usable is about 4 percentage points higher than comparable facilities in Taiwan, Rick Cassidy, president of TSMC’s US division, told listeners on a webinar Wednesday, according to a person who participated. The success rate, or yield, is a critical measure in the semiconductor industry because it determines whether companies will be able to cover the enormous costs of a chip plant." Read the full article here: https://lnkd.in/emS_UzVb