Douglas Friedman’s Post

Great news for National Security - "TSMC Arizona achieves production yields similar to those at its fabs in Taiwan" TSMC's Fab 21 near Phoenix, Arizona began trial production in April 2024 using 4nm-class process technology. Production yields are now on par with those from TSMC's Tainan facility in southern Taiwan, according to Bloomberg. Yield rate is a crucial factor in profitability - which TSMC is investing $65B in the Arizona campus (TSMC will receive $6.6 billion in grants and up to $5 billion in loans from the US government). Last year I took my family to the Grand Canyon. As you drive from Phoenix through Scottsdale to the open desert, north on the 17, it is impossible to miss this monstrosity. Here is the address -> 5088 W Innovation Cir, Phoenix, AZ 85083. Put it in Google maps to see how big this place is. Over a mile by a mile square. I’m excited to witness the growth of advanced manufacturing right here in America, and I'm thrilled to see TSMC's Arizona plant achieving production yields on par with their Taiwan facilities. This is a huge win for national security and U.S. tech innovation. Article on Tom's Hardware is here -> https://lnkd.in/e672fPa5 #AIArmy

TSMC is facing challenges with the construction of its second plant in Arizona. The delay in production is due to a shortage of skilled workers and issues with securing U.S. government funding. TSMC has decided to push back the timeline for production at its second factory from 2026 to either 2027 or 2028. Chairman Mark Liu shared these details during an earnings call, despite the semiconductor giant's recent agreement with the Arizona Building and Construction Trades Council. This news follows TSMC's decision to postpone production at the site's initial factory from 2024 to 2025. #tsmc #chips #chipsact #chipmaker #foundries #usa #semiconductors #semiconductorindustry #innovation #technology #technologynews

Really excited for this one folks! Today, the Biden-Harris Administration is announcing that the Department of Commerce and TSMC Arizona have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.6 billion to support the construction of THREE leading-edge fabs and create tens of thousands of jobs. The process of making leading-edge chips has become the most technical and sophisticated manufacturing process in human history, and with this investment, the Biden-Harris Administration is ensuring that the world’s most advanced semiconductor technology is made right here in the United States. Hard to put into a few words how game changing this announcement is for American’s economic and national security, so read more below: https://lnkd.in/eGpUNNQu

Some really great CHIPS for America news this morning. The Dept of Commerce CHIPS Program Office announced a $6.6 billion grant to the Taiwan Semiconductor Manufacturing Company (TSMC)! TSMC also announced that they’re increasing their investment and will build a newly revealed third fab in Arizona. This means that the most advanced semiconductor manufacturing on the planet is going to be happening here in the United States by the end of the decade. CHIPS funding from the federal government is critical but for this program to truly succeed there does need to be a flywheel effect with private industry seeing increased investments as rational — including the critical suppliers that are building plants in the surrounding areas to support this increased manufacturing capacity. Along with workforce investments, and strong state/local coordination, this is the kind of momentum that can help develop an emerging cluster and make this program a true success. Huge!

In the latest stride towards semiconductor self-reliance, TSMC's Arizona project stands to gain significantly from U.S. government incentives, with proposals under the #CHIPSACT offering up to $6.6 billion in direct funding and an additional possibility of $5 billion in loans. This move is part of a larger strategy, with #TSMC committing over $65 billion towards constructing three cutting-edge fabrication facilities in Arizona, a clear nod to the Biden administration's priorities in semiconductor advancement. This development echoes a similar, substantial investment in #Intel, which received $8.5 billion for its endeavors in enhancing chip manufacturing capabilities. Against this backdrop, Intel's CEO, Pat Gelsinger, has made a compelling argument for further action, advocating for a #ChipAct2. Gelsinger's call to action underscores an urgent need for continued and enhanced legislative support to bolster the semiconductor industry, ensuring its security, innovation, and the competitive edge of the United States in the global tech arena. These investments signify a monumental effort to reclaim and secure semiconductor manufacturing sovereignty, marking a pivotal moment in U.S. industrial policy. They reflect a growing acknowledgment of the semiconductor sector's critical importance to national security, economic prosperity, and technological leadership. The call for a #ChipAct2 further emphasizes the ongoing need for strategic, concerted actions to sustain and accelerate America's momentum in the #semiconductor race. #inflationreductionact #reshoring #ignitingamericanmanufacturing #americanmanufacturingsupercycle #workforcedevelopment

💰 TSMC's $12 Billion US Semiconductor Boost TSMC embarks on a historic $12 billion venture with the US government under the CHIPS and Science Act. Details includes: 💵 Funding: Up to $6.6 billion in grants, plus $5 billion in direct funding. Expansion: A third facility in Phoenix, Arizona, part of a $65 billion investment plan, the largest foreign direct investment in Arizona and a monumental greenfield project in the US. 🏅 Impact: Aimed at ramping up US semiconductor supply, the initiative will create 6,000 high-tech and 20,000 construction jobs and support major tech companies like AMD, Apple, Nvidia, and Qualcomm. 💡 Goal: Reinforces the US's ambition to produce 20% of the world’s leading-edge chips by 2030, enhancing technological independence and security. The collaboration is a cornerstone in the US's efforts to fortify its position in the global semiconductor arena, aligning with broader goals for economic security and innovation leadership. Read more: https://lnkd.in/en32Ytms #TSMC #Semiconductor #USInnovation #CHIPSandScienceAct

TSMC is set to make a significant move in the global semiconductor landscape by establishing its first European fabrication plant in Germany. The Taiwanese chipmaking giant is rapidly expanding its global footprint, with its upcoming German facility following in the footsteps of its Arizona plant. This strategic expansion positions TSMC as a dominant player in the semiconductor market, capable of serving customers worldwide. TSMC's German fab, scheduled to begin construction next month, represents a major milestone for the European semiconductor industry. The facility will focus on producing 28/22nm and 16/12nm chips, creating thousands of high-tech jobs and bolstering the EU's efforts to strengthen its semiconductor supply chain through initiatives like the EU Chips Act. While TSMC's entry into the European market brings new opportunities, it also intensifies competition with rivals like Intel. The German government's support for TSMC, coupled with its decision to withhold additional subsidies for Intel, has created a complex dynamic within the region. #TSMC #chips #semiconductor #semiconductors #Europe #Germany #EUchipsact #globalization #supplychain #technology #chipmanufacturing #investments #competition #Intel #semiconductorindustry #technologynews

In principle, this is progress. But principles never built anything. "It will be months before TSMC receives any of the promised funding, as the company enters a due-diligence period before reaching a final, binding agreement. Money will then be disbursed based on construction and production benchmarks, and could be clawed back if TSMC doesn’t hold up its end of the deal." Lawsuits could be filed at any point, it would also be difficult to find the talent (both in quantity and quality). Just a note that US started before Germany and Japan. Japan has one fab plant up and running already. "The TSMC site has seen several setbacks, including months of conflict with labor unions that resulted in delays at the first factory. The second facility, which is now slated to begin manufacturing 2nm and 3nm chips in 2028, was delayed from 2026 due to market conditions and uncertainty about levels of US government support. At least one TSMC supplier has scrapped its planned Arizona project, citing workforce difficulties."

I'm thrilled to announce #TheChipStack, a new Substack that Kaden Chuang from Stanford University's #Taiwan Science and Technology Hub and I have launched to bring global perspectives on the U.S. #CHIPSAct. From scorecards to deep dives, please subscribe for the latest insights. #semiconductors #supplychain #foundry TSMC, #Intel, Samsung Semiconductor Micron Technology

I love chips. Especially the ones made in Texas! This announcement is another in a series of stories about critical manufacturing supply chains being built in Texas. Samsung's multi-billion dollar investment is important not just because of the direct impact to Texas (and the US) but because it will invite other parts of the semi-conductor supply chain related to se to come to Texas. This is how industries are created: by building ecosystems. Building an entire manufacturing supply chain around a product like semi-conductors is a long term process but I am so happy to see it happening in Texas! https://lnkd.in/eGxhD5ee #reshoring #manufacturing #MFHouston #Texas