Taiwan Media: "TSMC to Increase US Factories from 3 to 6"

Securing a Site for Six Factories

Taiwan's TSMC, the world's largest foundry company, is set to receive a massive support package of $11.6 billion (approximately 15.834 trillion KRW) from the United States, and Taiwanese media including Liberty Times reported on the 11th that it could build six semiconductor manufacturing plants instead of three.

According to reports citing sources, the site secured by TSMC in Phoenix, Arizona, for factory construction spans 1,100 acres (about 4.45 km²). This is more than 50% of the size of the Hsinchu Science Park in northern Taiwan, large enough to build six wafer fabs.

[Image source=Reuters Yonhap News]

A supply chain official explained that this means TSMC is not only building three plants but also has the potential to expand production later. By securing the land in advance, if subsequent negotiations proceed smoothly, additional plants can be constructed.

Building advanced process semiconductor plants in the Phoenix area reduces geopolitical risks while enabling supply to major U.S. customers nearby.

According to sources, TSMC plans to dispatch Zhuang Zishou, the deputy general manager (vice president level) in charge of facility operations, to the Arizona plant next month. He will collaborate and divide responsibilities with Wang Yinglang, the deputy general manager in charge of fab operations. Liberty Times interpreted this as TSMC accelerating factory construction and production in the U.S. to secure a competitive edge through advanced processes.

Earlier on the 7th, the U.S. announced direct subsidies of $6.6 billion (about 9.009 trillion KRW) and loans of $5 billion (about 6.825 trillion KRW) to TSMC. In response, TSMC decided to expand its investment scale from the original $25 billion (about 34.125 trillion KRW) to $65 billion (about 88.725 trillion KRW).

TSMC is preparing to trial-produce about 4,000 wafers using the 4nm (nanometer, one billionth of a meter) process at its first Phoenix plant by the end of this month. The goal is to start mass production with the 2nm process in the first half of 2025.