With the global chip shortage, manufacturers are now looking for ways to supply the massive demand that has led to a shortage in product due to lack of supply. TSMC is one company that manufactures semiconductors and is now planning to branch out to a particular state in the US.
TSMC Plans Expansion in Arizona
The Taiwan Semiconductor Manufacturing Company or TSMC, is the chip foundry responsible for making advanced processors for companies like AMD, Apple, and Qualcomm. According to Reuters, the company is now beefing up on its plans to build factories in Arizona while actually turning away from a certain advanced plant in Europe.
Some time last year, TSMC officially announced its plan to invest a whopping $10 to $12 billion in order to build a brand new 5nm capable foundry somewhere near Phoenix, Arizona. According to the sources of Reuters, TSMC officials are now considering trebling the massive investment budget of the company by building a huge $25 billion second foundry that is capable of building the much needed 3nm chips, according to ArsTechnica.
TSMC US Expansion Rate
There are reportedly more tentative plans that are also in the works for other 2nm foundries over at the Phoenix campus growing over the course of the next 10 to 15 years as well. The company’s focus on the United States instead of Europe could have a lot to do with the company’s very own market.
Back in 2021 during the 1st quarter, there were reportedly 67% of the company’s sales in North America and 17% were reportedly in the Asia Pacific. It was also noted that only 6% actually came from Europe as well as the Middle East. A post from SlashDot.org notes that the majority of TSMC’s clients from Europe are actually auto manufacturers who reportedly buy the cheaper and less-advanced chips.
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Global Chip Shortage and Who It Affects
Since a lot of technology is being sold in the United States, it makes sense for TSMC to decide to make a factory in that area. Despite its plans to deal with the massive demand for semiconductors, the global chip shortage is still very much at large.
Due to the pandemic, companies have reportedly expected less sales of electronics which then turned out to be the opposite. Due to this and other logistical reasons, there is now a global chip shortage that has affected the manufacturing of certain products like the Sony PS5, the Microsoft Xbox Series X, and also other electronics as well.
Aside from the electronics industry, the auto industry is also reportedly suffering from this global semiconductor shortage. Due to the lack of chips, automakers are now scrambling to make enough cars in order to rake in larger profits. The estimation, however, shows that the global chip shortage could still continue well into 2022 with no specific timeframe on when it could be over.
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Written by Urian B.
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