TSMC sees $10 billion in annual revenue from Arizona chip plants

The chip maker Taiwanese TSMC plans to build a second chip plant in Arizona and more than triple its initial investment to $40 billion, estimating on Tuesday annual revenue of $10 billion from the facility when operational.

The foreign investment of Taiwan Semiconductor Manufacturing Co, the world’s largest contract chip maker, is one of the largest in US history.

The first chip manufacturing facility, or fab, will be operational in 2024, while the second nearby plant will make the most advanced chips currently in production, called “3 nanometers,” in 2026.

US President Joe Biden and other officials, including CEOs of major TSMC clients, attended a groundbreaking ceremony for the new $12 billion facility in a barren and barren part of north Phoenix.

“When we’re done with both factories, we’ll make more than 600,000 wafers a year, representing $10 billion in annual revenue,” TSMC Chairman Mark Liu said, adding that customers using those chips will see annual sales of more than 40,000 million dollars. A wafer is the shiny disc on which cakes are made. chips.

Liu said the two plants will create 13,000 high-paying tech jobs, including 4,500 under TSMC and the rest filled by vendors.

Apple Inc, Nvidia Corp and Advanced Micro Devices Inc, all major customers of TSMC, said they expected their chips to be made at the new Arizona plants.

“We work with TSMC to make the chips that help power our products around the world. And we look forward to expanding this work in the coming years as TSMC forms new and deeper roots in USA“said Apple CEO Tim Cook.

“AMD looks forward to being a great customer of both factories and we are committed to working closely with TSMC and the entire ecosystem,” said AMD CEO Lisa Su.

At least a dozen major cranes are still installed around the first factory, dubbed Fab 21.