Aligning with Trump's Semiconductor Production Policy
Board Discusses New Advanced Process Construction Plans
January Sales Up 35.9% Year-on-Year
Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), will increase its investment in the United States to align with U.S. President Donald Trump's domestic semiconductor production policy, according to Taiwanese media including United Daily News and China Times, citing sources on the 10th (local time).
At the TSMC board meeting held over two days from the 10th to 11th at the factory complex in Arizona, USA, investment responses to President Trump's semiconductor policy are expected to be a key agenda item. In particular, the board is expected to decide on investment related to the new construction plan for a 1.6 nm (nanometer, one billionth of a meter) process fab at the 21 fab (semiconductor production plant) in Phoenix, Arizona.
TSMC has started mass production of 4 nm products at its Arizona Plant 1 (P1), and Plant 2 (P2) is expected to complete its topping-out ceremony this year and begin mass production of 3 nm products from the third quarter of 2027. Additionally, Plant 3 (P3) is scheduled to break ground this year and install semiconductor production facilities by the end of 2027.
According to Taiwanese media, the area of the Arizona TSMC factory can be expanded up to Plant 6 (P6), covering 445 hectares (ha; 1 ha = 10,000 square meters).
The board is also reported to review plans for the construction of the first advanced packaging plant in the United States.
Meanwhile, TSMC announced on its website that it has provisionally estimated losses of 5.3 billion New Taiwan dollars (approximately 230 billion Korean won) due to a magnitude 6.4 earthquake that occurred on the 21st of last month in the southern Tainan region of Taiwan.
At that time, damage to wafers (silicon plates used in semiconductor manufacturing) at the TSMC factory within the Southern Taiwan Science Park (Nanke) was more severe than expected, with tens of thousands of wafers estimated to be discarded. The final net loss amount, after insurance settlements, will be reflected in the first quarter earnings.
TSMC stated that it is doing its best to recover production volume and that there will be no changes to its annual outlook, including operating profit margin. TSMC's sales in January reached 293.29 billion New Taiwan dollars (12.9634 trillion Korean won), a 35.9% increase compared to the same month last year.
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