What to Know about the Industry Today: Why is TSMC Setting up Plants in the US despite Higher Cost?

 

BY WHITNEY HUNG - 2021-05-05 - IN BUSINESS, DAILY NEWS UPDATES

 

Regarding the source of revenue by headquarters of TSMC’s clients, those located in North America takes up over 60% in 2018 and 2019, followed by China taking up roughly 20%, Japan takes up 5%, the rest of Asia pacific taking up 9%, Europe, middle east and Africa taking up 6% in total, making North America the main source of revenue, which also owes to most IC designs headquarters being located in North America.

 

Industry sources indicated semiconductor shipments via air are also included in ESG evaluations. As clients set goals in pursuing carbon neutrality, localized manufacturing demands are also on the increase.

 

Roughly 90% of the world’s most advanced technology nodes – under 10nm – are being produced in Taiwan, the US is actively attracting TSMC, Samsung, and Intel to set plants outside of Asia. The US government is willing to provide subsidies up to US$30 billion.

 

The area of Arizona doubles the sum of all TSMC chipmaking factories at the Southern Taiwan Science Park in Tainan, Taiwan. Industry sources have pointed out that if fab expansion continues beyond 2024 to reach six plants in total, it could realize a so-called “mega-site” plan.

 

https://buzzorange.com/techorange/en/2021/05/05/tsmc-arizona-plant/