During a webinar on Wednesday hosted by the Potomac Institute for Policy Studies, Taiwan Semiconductor Manufacturing US President Rick Cassidy told listeners that TSMC's Phoenix, Arizona chip factory has achieved around 4% more usable chips than its Taiwan plants.
According to Bloomberg, this is a critical metric for TSMC, as its most advanced and efficient chip plants are based in Taiwan. It marks a major win for the US in reshoring chip production through the Biden administration's 2022 Chips and Science Act. However, Vice President Harris finds little leverage in touting domestic chip developments as inflation and border invasion dominate headlines with the election just ten days away.
"Our first fab entered engineering wafer production in April with 4-nanometer process technology, and the result is highly satisfactory, with a very good yield," TSMC CEO C.C. Wei told investors during an earnings call with investors last week, adding, "This is an important operational milestone for TSMC and our customers, demonstrating TSMC's strong manufacturing capability and execution."
TSMC has been one of the largest recipients of the Chips and Science Act, receiving $6.6 billion in grants and up to $5 billion in loans -- plus 25% tax credits -- to build three chip plants in Arizona.
So far, across all companies, the Biden administration has allocated $39 billion in direct grants, alongside $75 billion in loans and guarantees through the Chips and Science Act to revamp America's chip-making capacity that has collapsed over the decades after manufacturing was offshored to Asia. This reversal in trend is a promising sign for the revitalization of America's manufacturing capacities by the end of the decade. Also, high-tech chips for weapons systems mustn't be produced in areas in or around China - just in case geopolitical tensions spark snarled supply chains.
Last month, Taiwan-based independent journalist Tim Culpan revealed that TSMC's Arizona plant produced the first batch of Apple A16 chips using the 4 nm process.
After the chips are manufactured in Arizona, they'll likely be sent to Foxconn factories in China or India, where low-cost labor will be used to assemble iPhones or iPads.
This is great news for made-in-America chips - and reshoring efforts.