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TSMC Arizona “First Tool-In Ceremony”: Fact Sheet

Daniel Nenni

Admin
Staff member
TSMC AZ Tool Move In 2022.jpg



TSMC Arizona “First Tool-In Ceremony”: Fact Sheet and News Disclosures

December 6, 2022

Event Overview:
  • Today, TSMC celebrated a major milestone in the construction of TSMC Arizona’s fab together with TSMC’s alliance of suppliers, customers, business partners, government, and academia.

  • TSMC profiled the first pieces of state-of-the-art semiconductor manufacturing equipment for TSMC Arizona.

  • The cooperation highlighted today underscores TSMC Grand Alliance, one of the most powerful forces for innovation in the semiconductor industry. This brings together our customers, electronic design automation partners, IP partners, and key equipment and materials suppliers for a new, higher level of collaboration.
Key News Disclosures:

TSMC Arizona 1st fab update:
This facility (first announced in May 2020) will leverage the 4nm (N4) process, the latest addition to TSMC’s 5nm family of technologies.

TSMC Arizona 2nd fab announcement: TSMC is now constructing a building to serve as a second fab at our site in Arizona. In light of the strong customer demand TSMC is seeing for their most-advanced technology, the company announced its plan to have this second fab ready for 3nm production in 2026.
  • TSMC will invest $40B in its Arizona operations. This includes both the first and second fabs.

  • This represents one of the largest foreign direct investments (FDI) in U.S. history.

  • The first fab investment was already the largest FDI in the history of Arizona.

  • TSMC Arizona will create 4,500 direct high-tech, high-wage jobs; and will create over 21,000 construction jobs and over 13,000 jobs at supplier companies.

  • When production begins, TSMC’s N4 process will be the most advanced process in the USA. TSMC 3nm technology will follow when the second fab comes online (production in 2026)

  • There will be a combined annual capacity of 600K wafers made annually with both TSMC Arizona fabs.
  • TSMC Arizona will operate on 100% renewable energy

  • TSMC plans to build an Industrial Water Reclamation Plant which would allow us to reach “Near Zero Liquid Discharge”, which means the plant will be capable of reusing nearly every drop of water back into the facility.
Appendix

TSMC Arizona Fast Facts


  • In May 2020, TSMC first announced its intention to select Arizona for its new, advanced semiconductor fabrication (“fab”) facility in the United States.

  • As one of TSMC’s leading fabs, TSMC Arizona will play a vital role in onshoring semiconductor manufacturing, strengthening national economic competitiveness.

  • When complete, TSMC Arizona’s 1st fab (N4 process) will be the most advanced semiconductor process technology in the United States, which will enable U.S. leadership in the 5G and artificial intelligence era for decades. 3nm production will follow when the second fab comes online.
  • Volume production for 1st fab is scheduled to begin in 2024 and 2nd fab (3nm) is scheduled for 2026.

  • Combining the 1st and 2nd fabs, TSMC will be able to produce 600,000 semiconductor wafers annually using the most advanced process capabilities in the USA.
TSMC Arizona Fab Progress
  • TSMC has purchased more than 1,100 acres of land in Phoenix.

  • Construction of TSMC Arizona’s first fab began in April 2021 and has progressed at an incredible pace.

  • In June 2022, TSMC celebrated placing the last beam in the Arizona fab’s office building, known in the construction industry as a “topping milestone.”

  • In July 2022, structural construction of the fab building was completed. Work is continuing to be done on the interior works and furniture installation.

  • The construction project is on schedule to start operations in 2024.

  • Today’s event is to celebrate TSMC’s milestone of the first batch of state-of-the-art semiconductor manufacturing equipment to arrive in TSMC Arizona. The company is now getting ready for some of the world’s most advanced semiconductor manufacturing equipment, such as extreme-ultraviolet (EUV) tools, to be moved inside of the fab.
TSMC Arizona Economic Impact
  • The overall investment in TSMC Arizona will be approximately $40 billion, representing one the largest foreign direct investments in the United States.
  • The project (1st & 2nd fabs) will create 4,500 direct high-tech, high wage jobs.

  • TSMC has been busy training over 600 American trainees at its facilities in Taiwan, and they are now returning to Arizona armed with knowledge of the most advanced semiconductor technology.

  • The construction of TSMC Arizona has also driven local investment from leading semiconductor suppliers. TSMC has more than forty suppliers taking steps to establish operations near our ~ 1000-acre semiconductor complex in Phoenix to provide TSMC Arizona with ongoing support and collaboration. Among them are companies that make materials and components which are required in semiconductor fab operations. Some are starting their first U.S. operations in Arizona, and others are expanding their local operations. They bring new strengths to the U.S. semiconductor supply chain and will contribute greatly to ramping up leading-edge chip manufacturing.

  • According to an economic impact analysis by the Greater Phoenix Economic Council (Nov. 2022), TSMC Arizona will (with both fabs):
  • Create over 21,000 construction jobs and over 13,000 jobs at supplier companies.

  • Generate an estimated $769.8M in direct tax revenues plus $133.6M in indirect tax revenues -- for a total of $903.4M in tax revenue to Arizona over a 11-year period.

  • Create $4.1B of personal income, plus an additional $2.3B in indirect personal income for a total of $6.4B.

  • Create $20.6B in economic output, with $12.3B in direct economic output, and $8.3B in indirect output.
TSMC Arizona: Sustainability and Green Manufacturing
  • TSMC Arizona plans to build an Industrial Water Reclamation Plant which would allow the company to reach “Near Zero Liquid Discharge” which means the plant is capable of using nearly every drop of water back into the facility. Roughly 15MW of solar panels are being installed in 2023 in the TSMC Arizona parking lot which will also provide shade for employee vehicles. The electricity generated would be capable of powering 2,727 houses for an entire year. TSMC Arizona is incorporating a Sulfuric Acid Reclamation System which will allow it to reuse sulfuric acid from the production line, saving 921,300 gallons per year of sulfuric acid from disposal. TSMC Arizona aims to attract, foster, and grow a diverse pipeline of talent to the industry including support for K-12 STEM programs and vocational training.

TSMC Fast Facts

TSMC and Sustainable Operations

  • TSMC is the world’s first semiconductor company to join the RE100 renewable energy initiative.
  • TSMC has set a goal of reaching net zero emissions by 2050. To achieve this, TSMC will continue to set related mitigation measures, strengthen its wide variety of green innovations, and actively adopt renewable energy. In the short term, the company has set the goal of zero emissions growth by 2025 and reducing emissions to year 2020 levels by 2030.

  • Each year, TSMC publishes an annual Corporate Social Responsibility Report which evaluates critical challenges, benchmarks against global practices, outlines goals, and proposes plans for improvement.

  • Green manufacturing is the cornerstone of the company’s sustainable operations. TSMC regularly seeks to find areas of improvement spanning energy management, water management, waste management, and air pollution control. TSMC support cutting-edge research at global universities, including the U.S., to further innovation.
  • TSMC is the world’s only semiconductor company selected as a component of the Dow Jones Sustainability Indices (DJSI) for 22 consecutive years.

About the TSMC Grand Alliance: The TSMC Grand Alliance is one of the most powerful forces for innovation in the semiconductor industry, bringing together our customers, EDA partners, IP partners, and key equipment and materials suppliers for a new, higher level of collaboration. The objectives of the TSMC Grand Alliance are straightforward: to help our customers, the alliance members and ourselves win business and stay competitive.

We know collaboration works. We have seen it in the great strides our customers and ecosystem members have made through the Open Innovation Platform® that supports our customers' innovation and helps them attain maximum value from TSMC's technology.

Today, the Open Innovation Platform is an unmatchable design ecosystem and a key part of the Grand Alliance that will become much more powerful. Through the Grand Alliance, TSMC will relentlessly pursue our mission and collaborate with customers and partners. We need each other to be competitive. We need each other to win. Such is the power of the Grand Alliance.

About TSMC: TSMC (TWSE: 2330, NYSE: TSM) created the semiconductor Dedicated IC Foundry business model when it was founded in 1987. In 2021, TSMC served about 535 customers and manufactured more than 12,302 products for various applications covering a variety of end markets including smartphones, high performance computing, the Internet of Things (IoT), automotive, and digital consumer electronics.

Annual capacity of the manufacturing facilities managed by TSMC, and its subsidiaries exceeded 13 million 12-inch equivalent wafers in 2021. These facilities include four 12-inch wafer GIGAFAB® fabs, four 8-inch wafer fabs, and one 6-inch wafer fab – all in Taiwan – as well as one 12-inch wafer fab at a wholly owned subsidiary, TSMC Nanjing Company Limited, and two 8- inch wafer fabs at wholly owned subsidiaries, WaferTech in the United States and TSMC China Company Limited.

In December 2021, TSMC established a subsidiary, Japan Advanced Semiconductor Manufacturing, Inc. (JASM), in Kumamoto, Japan. JASM will construct and operate a 12-inch wafer fab, with production targeted to begin by the end of 2024. Meanwhile, the Company continues to execute its plan for an advanced semiconductor fab in Arizona, the United States, with production targeted for 2024.

Media Contacts:
Nina Kao
Head of Public Relations
Tel: 886-3-563-6688 ext.7125036
Mobile: 886-988-239-163
E-Mail: nina_kao@tsmc.com[/TD]

Ulric Kelly
Public Relations
Tel: 886-3-563-6688 ext. 7126541
Mobile: 886-978-111-503
E-Mail: ukelly@tsmc.com[/TD]

For Arizona inquiries:
Christine Dotts
Brodeur Partners, Sr. Vice President
Mobile: 602-421-1809
E-Mail: cdotts@brodeur.com
 
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KevinK

Member
Quite a party there today with Biden, Tim Cook, Morris Chang, chipmaker Micron Technology Inc (MU.O) CEO Sanjay Mehrotra and Nvidia CEO Jensen Huang, among others.


And far more consequential than this tech clown show inflicted on my (sorta) hometown.

 

cliff

Active member
So Foxxconn should have known that Wisconsin can only pack cheese and bottle beer? That only AZ and TX can manufacture electronics? Yes, I would agree with that. Wisconsin, stick to what you know.

I am happy that one of those guys brought TSMC to AZ.
 

jms_embedded

Active member
Roughly 15MW of solar panels are being installed in 2023 in the TSMC Arizona parking lot which will also provide shade for employee vehicles. The electricity generated would be capable of powering 2,727 houses for an entire year.
Impressive (and a good choice) but their math is off; it implies 5500W (about 20 panels) is enough to reach net zero power for a typical house in the Phoenix area. I have PV at my house and know the breakeven; it's somewhere in the 9-10KW (dc) range depending on how hot it is in the summertime -- I know my house isn't that much larger than average, and I have a higher-than-average efficiency air conditioner.
 

blueone

Well-known member
So Foxxconn should have known that Wisconsin can only pack cheese and bottle beer? That only AZ and TX can manufacture electronics? Yes, I would agree with that. Wisconsin, stick to what you know.

I am happy that one of those guys brought TSMC to AZ.
Like I said in the original post, I strongly suspect there was an underlying strategy failure with that plant that had nothing to do with its location. The original proposal was for an LCD display manufacturing facility, which seemed bizarre to many people, me included. The scale of the investment was out-sized compared to the financial opportunity of competing in the low-margin display market, dominated by China and South Korea. I privately suspected the LCD story was a cover for the rumored Apple car manufacturing site. The entire episode is weird, and a failure unlike anything else I've heard of with Foxconn. Wisconsin would have made much more sense for auto manufacturing, since the state has a successful history of plants in mechanical heavy industry. If the details are ever revealed it would make a great MBA case study.

 
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blueone

Well-known member
Roughly 15MW of solar panels are being installed in 2023 in the TSMC Arizona parking lot which will also provide shade for employee vehicles. The electricity generated would be capable of powering 2,727 houses for an entire year.​
I learned the hard way about the need for shade in the employee parking lots located in Phoenix, while visiting my team located there (with Intel) in the summer for the first time. Not being from the area, I didn't realize how powerful the sun could be. The covered parking spots were all taken, so I parked in an uncovered spot. I came out of the facility (Chandler) to fly back home, at about 5:30pm, and I literally couldn't touch the steering wheel or the floor shifter on the rental car. Fortunately the driver's seat wasn't hit by the sun, so I could sit. I was short on time, and needed to get going, so I did the only thing I could think of. I took off my polo shirt and held it on the steering wheel or the shifter as need be. (Yes, I'm a male.) The tactic worked, but I got some really weird looks while driving and when I got out of the car at the airport. After that I learned to carry two hand towels in my PC bag when going to Chandler, just in case.
 

KevinK

Member
What do you mean "clown show"? What is your point?
@cliff, my point is that the TSMC "tool-in" event is something of real economic significance. The Trump/Ryan/Foxconn groundbreaking in Racine, WI was a political clownshow staged for politics and ego that resulted in nothing, even though the development was touted as the the "Eighth Wonder of the World" by guess who, and cost about half a billion in road and improvements. I'm pretty bitter that that they pulled one over on my friends who still live there, but the local politicians (former governor and current speaker of the house) are culpable as well.
 

hist78

Well-known member
It's a rare photo to see some of TSMC's major customers, suppliers, and partners standing on the same platform for this ceremony. Hope someone can identify those people standing to Dr. Morris Chang's left.

From the left:

TSMC staff
Lisa Su, CEO of AMD
Jensen Huang, CEO of Nvidia
Unknown
Tim Cook, CEO of Apple
Rick Cassidy, Senior Vice President, Corporate Strategy Office / Chief Executive Officer and President, TSMC Arizona
Dr. C.C. Wei, CEO of TSMC
Dr. Mark Liu, Chairman of TSMC
Dr. Morris Chang, Founder of TSMC
Unknown
Unknown
Unknown
Unknown
 

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cliff

Active member
@cliff, my point is that the TSMC "tool-in" event is something of real economic significance. The Trump/Ryan/Foxconn groundbreaking in Racine, WI was a political clownshow staged for politics and ego that resulted in nothing, even though the development was touted as the the "Eighth Wonder of the World" by guess who, and cost about half a billion in road and improvements. I'm pretty bitter that that they pulled one over on my friends who still live there, but the local politicians (former governor and current speaker of the house) are culpable as well.
Mr. MondayMorningQuarterback, this was a cheap shot. Keep in mind that one of those guys brought TSMC to AZ. They tried. Odds are, another company or same will use that facility. The US is hopefully building up manufacturing. You probably think that city's building sports stadiums is a better option than trying to build manufacturing back in the US?

For example, I have my doubts about Intel's ability to turn around their culture. I have witnessed their stupidity and wokeness first hand, but I agree with Mr. Gunslinger making a go of it. The competition is fierce. They have their work cut out for them, for TSMC and ASML defy physics. If Gunslinger fails, he fails, but he must try. He isn't a loser. Build it. Hopefully they come. There are many variables. There are no sure things.
 

KevinK

Member
Mr. MondayMorningQuarterback, this was a cheap shot. Keep in mind that one of those guys brought TSMC to AZ. They tried. Odds are, another company or same will use that facility. The US is hopefully building up manufacturing. You probably think that city's building sports stadiums is a better option than trying to build manufacturing back in the US?
I think you misconstrue a lot:
* I’m not a Monday Morning Quarterback - many people prognosticated well ahead of the groundbreaking, based on Foxconn’s history, that the Wisconsin effort was a pure political ploy and doomed to ignomy. But the politicians pressed it forward. Maybe they should get a “participation ribbon” for trying, but not much more.
* The CHIPS act, a range of current politicians and American chip producers that are concerned about their supply chains due to the COVID experience and other geopolitical factors, deserve the credit for motivating the TSMC factories in AZ (and Intel in OH), rather than any of the politicians responsible for the Foxconn fiasco.
* I’m entirely for American manufacturing, having grown up in a car town in Wisconsin. Sadly, it seems like most people are very disconnected from the actual numbers - The worst period for US manufacturing was 2002-2009. It’s been on a steady year to year increase since then, except for the 2020 COVID detour. The good news is that we are well above the Feb 2020 peak now, and climbing again. And the factories that various federal and state governments helped incentivize in the 2010 timeframe are bearing more fruit (Tesla Fremont and Nevada, GlobalFoundries, NY), while CHIPs is bringing in new wins. I think you care about new stadium jobs more than I do.

 

KevinK

Member
ps: As far as Intel is concerned, I don’t think they had much of a choice if they wanted to stay at the wafer scale they needed to stay on the leading edge, so I applaud Pat G’s decision. I hope he has the long term staying power to get to the other side, and I’m encouraged that they are not going it alone - “Intel is more open to sharing the R&D burden with its chip equipment suppliers than in the past rather than trying to do everything itself”. Just like the Japanese cellular industry pre-iPhone, Intel had evolved their own bizarre, not-to-scale global internal design/fab ecosystem, because of NIH, that was ripe for disruption. But Intel’s new manufacturing moves are at least considered decisions. Foxconn Wisconsin was pure political white elephant.
 

blueone

Well-known member
ps: As far as Intel is concerned, I don’t think they had much of a choice if they wanted to stay at the wafer scale they needed to stay on the leading edge, so I applaud Pat G’s decision. I hope he has the long term staying power to get to the other side, and I’m encouraged that they are not going it alone - “Intel is more open to sharing the R&D burden with its chip equipment suppliers than in the past rather than trying to do everything itself”. Just like the Japanese cellular industry pre-iPhone, Intel had evolved their own bizarre, not-to-scale global internal design/fab ecosystem, because of NIH, that was ripe for disruption. But Intel’s new manufacturing moves are at least considered decisions. Foxconn Wisconsin was pure political white elephant.
I'm convinced that had Intel maintained their fab process leadership, they would have decided not to go after the foundry business.
 
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KevinK

Member
I'm convinced that had Intel maintained their fab process leadership, they would have decided not to go after the foundry business.
I'm going to suggest the opposite - they couldn't maintain their leadership because they were losing scale in relation to TSMC while also pretty much not leveraging the broader equipment / IP / EDA ecosystem. When they used fab equipment, outside IP and EDA, it was in their own weird Intel-centric way, so they got nowhere near the same leverage TSMC, Samsung and others get from broad industry learning (the foundry ecosystem(s) eventually prevailed over IDM silos). So becoming more foundry-like can perhaps give them greater scale while also enabling them to tap into far broader industry technology investment and learning.
 

Mooredaddy

Active member
I'm going to suggest the opposite - they couldn't maintain their leadership because they were losing scale in relation to TSMC while also pretty much not leveraging the broader equipment / IP / EDA ecosystem. When they used fab equipment, outside IP and EDA, it was in their own weird Intel-centric way, so they got nowhere near the same leverage TSMC, Samsung and others get from broad industry learning (the foundry ecosystem(s) eventually prevailed over IDM silos). So becoming more foundry-like can perhaps give them greater scale while also enabling them to tap into far broader industry technology investment and learning.
Do people really like working with Intel though? Everything I’ve heard is they are very “my way or the high way” about most things. Not at all an equal partner is many respects. Maybe someone with closer contact can say more.
 

hist78

Well-known member
It's a rare photo to see some of TSMC's major customers, suppliers, and partners standing on the same platform for this ceremony. Hope someone can identify those people standing to Dr. Morris Chang's left.

From the left:

TSMC staff
Lisa Su, CEO of AMD
Jensen Huang, CEO of Nvidia
Unknown
Tim Cook, CEO of Apple
Rick Cassidy, Senior Vice President, Corporate Strategy Office / Chief Executive Officer and President, TSMC Arizona
Dr. C.C. Wei, CEO of TSMC
Dr. Mark Liu, Chairman of TSMC
Dr. Morris Chang, Founder of TSMC
Unknown
Unknown
Unknown
Unknown

I was wondering where did Pat Gelsinger go during the celebration. No matter what, TSMC has been an Intel's important partner since Intel's founders were still in charge 30+ years ago. He can be there.

Now I know that when TSMC's Chairman, CEO, Founder, and top leadership went to Arizona for the "first tool-in" celebration, Pat Gelsinger went opposite direction to Taiwan.


 
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xgan90

New member
It's a rare photo to see some of TSMC's major customers, suppliers, and partners standing on the same platform for this ceremony. Hope someone can identify those people standing to Dr. Morris Chang's left.

From the left:

TSMC staff
Lisa Su, CEO of AMD
Jensen Huang, CEO of Nvidia
Unknown
Tim Cook, CEO of Apple
Rick Cassidy, Senior Vice President, Corporate Strategy Office / Chief Executive Officer and President, TSMC Arizona
Dr. C.C. Wei, CEO of TSMC
Dr. Mark Liu, Chairman of TSMC
Dr. Morris Chang, Founder of TSMC
Unknown
Unknown
Unknown
Unknown
Rick Wallace, CEO of KLA and Tim Archer, CEO of Lam Research to the right in this photo. Executives of AMAT, ASML, TEL, ASM International are also on the stage.
 
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