TSMC Arizona “First Tool-In Ceremony”: Fact Sheet and News Disclosures
December 6, 2022
- 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.
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.
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 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.
- 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 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.
Head of Public Relations
Tel: 886-3-563-6688 ext.7125036
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For Arizona inquiries:
Brodeur Partners, Sr. Vice President