WaferTech Celebrates its Name Change to TSMC Washington

[Daniel Nenni]

CAMAS, Washington, Dec. 14, 2023—TSMC (TWSE: 2330, NYSE: TSM) subsidiary, WaferTech, today celebrated the announcement of its official name change to TSMC Washington. The name change is a reflection of TSMC’s deep-rooted connection with its subsidiaries. It also aligns with TSMC's strategic efforts to establish a unified corporate identity across all subsidiaries as part of the company's global expansion.

Since its inception in 1996, WaferTech has been an integral member of the TSMC family, and in 2010, it became a wholly-owned subsidiary, playing a pivotal role in shaping TSMC's global manufacturing footprint. The decision to embrace the TSMC Washington identity underscores the company's deep-rooted connection with the TSMC legacy, marking 27 years of unwavering dedication to semiconductor contract manufacturing.

"In embracing the identity of TSMC Washington, we signify not just a name change but a powerful affirmation of our enduring commitment to innovation and collaboration," said Y.P. Chin, Senior Vice President of Operations and Overseas Operations Office at TSMC. "This transition underscores the integral role TSMC Washington plays within our family, contributing to the ongoing success and innovation that defines TSMC's legacy in the semiconductor industry."

The transition to TSMC Washington signifies a strategic move to leverage TSMC's unparalleled global reputation to amplify the subsidiary’s presence in business engagements, strengthen partnerships, and solidify its status as a destination for top talent in the United States semiconductor industry.

Legal Disclaimer
WaferTech’s Certificate of Formation has been formally amended to change the company’s name to TSMC Washington, LLC. Only the company’s name has been changed; we have not established a new company. This name change will not affect the company’s existing contracts, nor will it affect or delay any current company business.

TSMC Spokesperson​

Wendell Huang
Vice President & Chief Financial Officer
Tel:886-3-5055901

TSMC Deputy Spokesperson​

Nina Kao
Public Relations Division
Tel:886-3-5636688 Ext.7125036

 

[blueone]

I take full credit for this name change. I think it was the result of several sarcastic posts I've made here about Morris Chang not knowing which state the WaferTech facility is in. Now the problem is solved, and face is saved. You're welcome, TSMC.

 

[Daniel Nenni]

I thought it was me!

TSMC’s First US Fab - Semiwiki

TSMC originally brought the pure-play foundry business to the United States in 1996 through a joint venture with customers Altera, Analog Devices, ISSI, and private investors (no government money). Altera is now part of Intel but ADI is still a top TSMC customer and enthusiastic supporter. I...

semiwiki.com

 

[nghanayem]

About 27 years late, but better late then never. Nice to see the team getting the recognition they deserve.

 

[Tanj]

Missing from the press release is anything about amping up the goals and investment.

 

[Barnsley]

Missing from the press release is anything about amping up the goals and investment.

One step at a time!

 

[hist78]

Missing from the press release is anything about amping up the goals and investment.

Why TSMC needs to invest more in the US at the current circumstance?

There are several critical issues in US that neither TSMC nor US government can fully control.

In the meantime Japan (or Germany in certain degree) works hard to win TSMC's investment.

In US, certain people think they are "entitled" to have TSMC spend billions of dollars to build a fab for them. Bureaucracy and shakedowns are out of control.

In Japan or Germany, they know they need to work hard and fast to earn TSMC's trust and to get favorable decisions.

 

[Tanj]

In US, certain people think they are "entitled" to have TSMC spend billions of dollars to build a fab for them. Bureaucracy and shakedowns are out of control.

So, you are saying there were bureaucracy and shakedowns at Wafertech? That a company has no obligation to invest in the future of its sites and workers?

In Japan or Germany, they know they need to work hard and fast to earn TSMC's trust and to get favorable decisions.

TSMC is making a profit, in an industry with a significant environmental footprint. Are you suggesting we should treat them like sports teams, let them walk all over the taxpayers? But anyway, USA is currently happy to offer them better subsidies than either Japan or Germany, so that is not the issue.

Wafertech is in a region with significant support for high tech. The company was built up into something TSMC thought worth buying., by the leaders and workers of that region. It appears, from the outside, that its Taiwan centered culture did not learn how to make the best of the asset they bought. Certainly TW bosses made disparaging remarks about it not being like Taiwan. I do hope the press release is a sign of some renewed effort by TSMC to be a world company.

 

[hist78]

So, you are saying there were bureaucracy and shakedowns at Wafertech? That a company has no obligation to invest in the future of its sites and workers?

TSMC is making a profit, in an industry with a significant environmental footprint. Are you suggesting we should treat them like sports teams, let them walk all over the taxpayers? But anyway, USA is currently happy to offer them better subsidies than either Japan or Germany, so that is not the issue.

Wafertech is in a region with significant support for high tech. The company was built up into something TSMC thought worth buying., by the leaders and workers of that region. It appears, from the outside, that its Taiwan centered culture did not learn how to make the best of the asset they bought. Certainly TW bosses made disparaging remarks about it not being like Taiwan. I do hope the press release is a sign of some renewed effort by TSMC to be a world company.

I am talking about the difficulties TSMC is dealing with in Arizona and the challenges TSMC, Intel, and other semiconductor related manufacturers going to face in the US Chips Act implementation. Those experience will make TSMC hesitate to do more at TSMC Washington.

"That a company has no obligation to invest in the future of its sites and workers?"

Does TSMC not train its employees working in US, Japan and Germany? I read and heard many cases about TSMC US and Japanese employees went to Taiwan for multiple months or yearlong in-fab training. Next year, German college students will go to Taiwan for semiconductor manufacturing training too.

The so-called TSMC Arizona workers problem is a typical union shakedown scheme. It's not about employee training or compensation.

Don't just laugh at it and think it's a cultural conflict between Taiwanese and American. Do we forget Ford, GM. Chrysler, Tesla, Amazon, Walmart and countless American companies all got into dispute with Unions?

Assume one day you need a contractor to install an AC unit and build air ducks for your new Chicago factory.

First, the union controlled contractor tells you, they don't know how to install such advanced high-tech AC. YOU, need to pay those union workers' labor time and training expense to educate them. You told them this is one time construction project. If they don't know how to install it, you would rather bring your long time trusted contractor from Indiana to save time and money. It's a 50-mile driving from Indiana. It's not really a big deal.

The Union will tell you NO. Reasons? Because we Union OWN this area. You are not allowed to bring people from other states.

The Union may even give you some hints (optional): In the past some unauthorized workers used by the contractors found their car entry key holes filled with glue.

Second, You found out your Chicago contractor/Union workers will finish the whole AC project in one to two months at best while you Indiana contractor can finish it in one week. Reasons: No reason or laughable reasons.

Third: Then you found out your competitors already start selling the same product you plan to manufacture in the new Chicago factory last month.

Fourth: If you agree to pay 1.5X to 2X overtime, the Union promises you it can make sure the project will finish in three months.

Fifth: You found out it will be too late with >3 months delay.


You mentioned "Wafertech is in a region with significant support for high tech." But by now we can understand that a lot of issues that bother TSMC, Intel, Samsung, or Micron are beyond the Whitehouse, Senate, or State/local governments' control. Even Intel does not do large scale manufacturing project in Oregon anymore (as large as Intel fab in Arizona, Ohio, or Germany).


"USA is currently happy to offer them better subsidies than either Japan or German"

Other than a small $35 million grant announced for BAE system, US Chips Act hasn't approved any applications yet. Do you have some information in terms of percentage the US Chips Act will do for Intel, TSMC, Samsung, or Micron? From the available data, Japanese government subsides about 50% of TSMC new Japanese fabs while German government subsidies Intel Germany for about 25% of new fab's cost. I think it will be difficult to do the same level of subsidy in the US Chips Act. One reason is that there is only total $39 billion Chips Act budget (across 5 years) for semiconductor manufacturing. But $200 billion/50 US based projects have already announced by semiconductor companies and Chips Act has received about 120 applications for $39 billion in funding as the end of October 2023.


"TSMC is making a profit, in an industry with a significant environmental footprint. Are you suggesting we should treat them like sports teams, let them walk all over the taxpayers?"

Did any person suggest to give TSMC special and preferrable treatment? The wrong approach in implementing Chips Act will hurt Intel, Globalfoundries, Samsung, TI, and Micron and US competitiveness too, not just TSMC.

People might know recently the US Congress failed to pass a measure to streamline the NEPA (National Environmental Policy Act) permitting process related to the Chips Act. But the Senate voted it unanimously to approved it. Can we believe the whole Senate, 100 senators, are all heartless crooks who care nothing about protecting environment? Do we believe all 100 senators love TSMC so much and want to give TSMC an easy pass in the environment review?

TSMC now has multiple places to setup a new fab. Taiwan, Japan, Germany, and US. US is one of the good place for it but not the best place. I don't believe it will attract any semiconductor manufacturer, not just TSMC, to manufacturing Chips in US if a NEPA review process takes 3 to 5 years to finish.

 

[nghanayem]

I am talking about the difficulties TSMC is dealing with in Arizona and the challenges TSMC, Intel, and other semiconductor related manufacturers going to face in the US Chips Act implementation. Those experience will make TSMC hesitate to do more at TSMC Washington.

"That a company has no obligation to invest in the future of its sites and workers?"

Does TSMC not train its employees working in US, Japan and Germany? I read and heard many cases about TSMC US and Japanese employees went to Taiwan for multiple months or yearlong in-fab training. Next year, German college students will go to Taiwan for semiconductor manufacturing training too.

I think Tanj was referring to how TSMC never built up wafertech all those years ago. As a result the site is subscale and uneconomical. Canceling their future investments doomed wafertech to it's fate. Which sucks because at that point it doesn't matter how good their process engineers are, they will always be less efficient than any of the TW sites and be used as ammunition against further diversification.

You mentioned "Wafertech is in a region with significant support for high tech." But by now we can understand that a lot of issues that bother TSMC, Intel, Samsung, or Micron are beyond the Whitehouse, Senate, or State/local governments' control. Even Intel does not do large scale manufacturing project in Oregon anymore (as large as Intel fab in Arizona, Ohio, or Germany).

What do you mean? Intel finished another expansion in oregon (which is already their biggest site) like a year ago. According to their recent filings more is in the works too.

Intel plans massive Oregon factory expansion, filings show

Environmental applications describe an overhaul that could cost billions of dollars.

www.oregonlive.com

"USA is currently happy to offer them better subsidies than either Japan or German"

Other than a small $35 million grant announced for BAE system, US Chips Act hasn't approved any applications yet. Do you have some information in terms of percentage the US Chips Act will do for Intel, TSMC, Samsung, or Micron? From the available data, Japanese government subsides about 50% of TSMC new Japanese fabs while German government subsidies Intel Germany for about 25% of new fab's cost. I think it will be difficult to do the same level of subsidy in the US Chips Act. One reason is that there is only total $39 billion Chips Act budget (across 5 years) for semiconductor manufacturing. But $200 billion/50 US based projects have already announced by semiconductor companies and Chips Act has received about 120 applications for $39 billion in funding as the end of October 2023.

Definitely with you on this point. The US is behind on amount of delivery of subsides in spite of being first to announcing them. Japan is definitely the most aggressive non China player in this space. Of course I don't know if we want to cheer on subsides too much as we don't want a China situation either.

"TSMC is making a profit, in an industry with a significant environmental footprint. Are you suggesting we should treat them like sports teams, let them walk all over the taxpayers?"

Did any person suggest to give TSMC special and preferrable treatment? The wrong approach in implementing Chips Act will hurt Intel, Globalfoundries, Samsung, TI, and Micron and US competitiveness too, not just TSMC.

People might know recently the US Congress failed to pass a measure to streamline the NEPA (National Environmental Policy Act) permitting process related to the Chips Act. But the Senate voted it unanimously to approved it. Can we believe the whole Senate, 100 senators, are all heartless crooks who care nothing about protecting environment? Do we believe all 100 senators love TSMC so much and want to give TSMC an easy pass in the environment review?

TSMC now has multiple places to setup a new fab. Taiwan, Japan, Germany, and US. US is one of the good place for it but not the best place. I don't believe it will attract any semiconductor manufacturer, not just TSMC, to manufacturing Chips in US if a NEPA review process takes 3 to 5 years to finish.

I will stay out of that quagmire as I am not familiar with what the "streamlined process" was going to be like. If it was cutting corners I am against it no matter which company is getting said treatment. But if it was the same standards with a faster process I would be all for that.

 

[hist78]

I think Tanj was referring to how TSMC never built up wafertech all those years ago. As a result the site is subscale and uneconomical. Canceling their future investments doomed wafertech to it's fate. Which sucks because at that point it doesn't matter how good their process engineers are, they will always be less efficient than any of the TW sites and be used as ammunition against further diversification.

What do you mean? Intel finished another expansion in oregon (which is already their biggest site) like a year ago. According to their recent filings more is in the works too.

Intel plans massive Oregon factory expansion, filings show

Environmental applications describe an overhaul that could cost billions of dollars.

www.oregonlive.com

Definitely with you on this point. The US is behind on amount of delivery of subsides in spite of being first to announcing them. Japan is definitely the most aggressive non China player in this space. Of course I don't know if we want to cheer on subsides too much as we don't want a China situation either.

I will stay out of that quagmire as I am not familiar with what the "streamlined process" was going to be like. If it was cutting corners I am against it no matter which company is getting said treatment. But if it was the same standards with a faster process I would be all for that.

TSMC is a for profit business. If they can do better in other places than Camas, Washington, why they need to invest more in there?

Yes, Intel continuously invests in Oregon but like I said that it's not on the same scale of several announced Intel projects elsewhere, such as:

Arizona: $20 billion
Ohio: $20 billion
Germany: $33 billion
Israel: $25 billion
Ireland new Fab 34: $18.5 billion
Poland: $4.6 billion
Oregon: ?? billion


Regarding streamlined NEPA process, please take a look of a post I just did:

Raimondo warns US chips push faces long delays in permit process

(Bloomberg) — Commerce Secretary Gina Raimondo warned that US efforts to build out the domestic semiconductor industry could be delayed by years if companies are required to go through standard environmental reviews, signaling climate regulations may clash with national security goals. Projects...

semiwiki.com

 

[blueone]

TSMC is a for profit business. If they can do better in other places than Camas, Washington, why they need to invest more in there?

A better question is, why did TSMC build a fab in Camas, WA in the first place? As I've posted before, it looks to me, someone who has been to Camas multiple times, the fab looks like it was placed to fail. I'm surprised it has remained in operation this long.

 

[kopper]

Wafertech is in a region with significant support for high tech. The company was built up into something TSMC thought worth buying., by the leaders and workers of that region. It appears, from the outside, that its Taiwan centered culture did not learn how to make the best of the asset they bought. Certainly TW bosses made disparaging remarks about it not being like Taiwan. I do hope the press release is a sign of some renewed effort by TSMC to be a world company.

And now, the same problem is taking shape in Arizona. They expect that we will become like Taiwanese workers and that our construction tradespeople will consider it an honor to help build their facilities. These two statements came from an executive, and the four folks from our company having lunch with him heard it and smartly said nothing. I later had the opportunity to share the reality of a doomed fate should those expectations not change. You cannot go to a new environment, needing to use its resources, and expect the environment to adapt to suit your liking. Rather, one must adapt to their new environment, as I certainly had to do when I lived on their island many years ago. He knew and understood this already, but still had to march to the orders given from above.

Another contractor's manager shared with me his interaction with a group from the factory who complained that his union pipefitters didn't follow enough vertical hierarchy (and theirs is much more rigid than the non-union shops). A seasoned superintendent responded saying that much of what has been accomplished in the US has been a direct result of questioning the status quo, or as the marketing folks would say, being market disruptors.

It is in all of our best interests for the sunk cost of this venture to flourish and succeed. Intel had to diversify geographically to quell their customer's concerns over production disruption - from an earthquake. Today, the world has a significant dependence on TSMC's production of semiconductors, and the risk profile is much different and more complicated(though it certainly includes earthquakes).

 

[nghanayem]

TSMC is a for profit business. If they can do better in other places than Camas, Washington, why they need to invest more in there?

I don't disagree with your logic. If profit was the only thing that mattered though TSMC would have outsourced manufacturing to cheaper Malaysia and built all of their giga fabs there. What I disagree with is the choice of making a subscale site that is out of the way from the Oregon supercluster and then blaming the plant being in the USA for the poor economics rather than TSMC's poor strategy for the site. In my eyes TSMC sent Camas out to die and the end result was a false confirmation of their preconceived notions.

Yes, Intel continuously invests in Oregon but like I said that it's not on the same scale of several announced Intel projects elsewhere, such as:

Arizona: $20 billion
Ohio: $20 billion
Germany: $33 billion
Israel: $25 billion
Ireland new Fab 34: $18.5 billion
Poland: $4.6 billion
Oregon: ?? billion

Presumably these are full site costs. Intel lists D1X_3 shell only cost at $3B. I would bet that isn't far behind AZ or Is expansion in cost once you factor in tooling. It is also worth pointing out that Ohio and Germeny are greenfield sites. The general heuristic I learned was to add 15% for greenfield sites.

 

[Arthur Hanson]

Sadly, politics rules all in many unions. I have seen this firsthand and even union officials with an eye to the future have had their projects saddled with political favorites over people who could push progress forward. I hope they can find people of vision in the unions that will allow the people needed to move forward instead of political favorites.

 

[kopper]

I don't disagree with your logic. If profit was the only thing that mattered though TSMC would have outsourced manufacturing to cheaper Malaysia and built all of their giga fabs there. What I disagree with is the choice of making a subscale site that is out of the way from the Oregon supercluster and then blaming the plant being in the USA for the poor economics rather than TSMC's poor strategy for the site. In my eyes TSMC sent Camas out to die and the end result was a false confirmation of their preconceived notions.

Presumably these are full site costs. Intel lists D1X_3 shell only cost at $3B. I would bet that isn't far behind AZ or Is expansion in cost once you factor in tooling. It is also worth pointing out that Ohio and Germeny are greenfield sites. The general heuristic I learned was to add 15% for greenfield sites.

Would Malaysia actually be cheaper? They have all the benefits of influencing their government while importing labor where it makes sense for cost reduction. Many surprises were had here in Arizona as they discovered the power and water utilities were not operating at their disposal (the water is by the City but still moves at a typical slow pace). With a long tradition of importing cheaper labor to the island and the need to use their home-grown employees in the engineering positions, I don't see the cost upside to being located anywhere outside of TW.

The AZ site is not subscale, either. With 4 fab buildings required to meet the gigafab economic model and the AZ site having 6 from the very first site plan, this is not being built on a smaller scale. There is already talk of an additional land purchase, adding room for 2-6 more buildings, should they choose to go big instead of go home.

The Intel cost item has always been interesting - D1X Mod1 was publicly announced at $5B before breaking ground, and the core-shell cost plus support buildings was around 3B, iirc. What I don't know is how many tools were included in the remaining $2B since it was the new TD building and would take some time to become fully populated. There has been so much cost escalation in the past 10 years that it has been hard to track. OR vs AZ - labor is about 40% cheaper in AZ, which is a significant savings when multiplied over the several million manhours needed. Ohio should fall somewhere in between as it is all/primarily union but not at OR level wages.

 

[cliff]

Train them in Spanish.