Taiwan Semiconductor Wins Apple, Nvidia As First Customers Of Arizona Plant: Report
Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) will likely be two of the first customers for Taiwan Semiconductor Manufacturing Company Ltd's (NYSE: TSM) new plant in Arizona.
The plant will likely begin making some of the most advanced chips as early as the end of 2023, Nikkei Asia reports.
Apple emerged as the most crucial first-wave customer when the plant began production, with Nvidia likely to follow suit.
Other top U.S. chip developers, including Advanced Micro Devices, Inc (NASDAQ: AMD) and Xilinx, are also in talks to buy output.
TSMC originally planned to produce 20,000 wafers a month in Arizona, but it now aims to double that capacity and make even more advanced chips there.
TSMC initially targeted chips using the 5- and 4-nm process technology for iPhone 14 and iPhone 14 Pro. Under the new plan, the Arizona plant will make a further 20,000 wafers a month using 3-nm.
Investment for the 3-nm expansion could be more significant than the $12 billion TSMC invested in the plant's first phase.
TSMC founder Morris Chang has confirmed that TSMC will bring the latest 3-nm chip production to the U.S. but also said that manufacturing in the U.S. will be 50% more expensive than in Taiwan.
Samsung Electronics Co, Ltd (OTC: SSNLF) and Intel Corp (NASDAQ: INTC) also massively expanded chip production footprints in the U.S.
The report cited Charles Shi, a semiconductor analyst with Needham & Co., who said TSMC should put a higher priority on its new plants and expansions in Arizona and Japan.
Price Action: TSM shares traded higher by 0.68% at $82.06 on the last check Monday.
Photo Via Wikimedia Commons
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