TSMC’s US plant unlikely to get latest chip technology ahead of Taiwan, CEO says

Apple and Nvidia chip supplier TSMC is spending US$65 billion on three giant factories in the state of Arizona

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Taiwan Semiconductor Manufacturing Co says most of its advanced chip manufacturing would remain in Taiwan. Photo: Shutterstock

Published: 5:52pm, 17 Jan 2025

The new US plant of Taiwan Semiconductor Manufacturing Co (TSMC) is unlikely to get the most advanced chip technology before factories in Taiwan owing to complex compliance issues, local construction regulations and various permitting requirements, the company’s chief executive said.

TSMC chairman and chief executive C C Wei said building the new factory in Arizona has taken at least twice as long as in Taiwan, in comments detailing specific challenges for the US as the country seeks to rebuild its domestic semiconductor manufacturing sector.

“Every step requires a permit, and after the permit is approved, it takes at least twice as long as in Taiwan,” Wei said late on Thursday at a National Taiwan University event. He added that it would therefore be hard for TSMC to use its latest technology in the US before Taiwan.

TSMC, the world’s largest contract manufacturer of advanced chips used by major companies including Apple and Nvidia, is spending US$65 billion on three giant factories in the state of Arizona.

TSMC has said most of its chip manufacturing would remain in Taiwan, especially for the most advanced integrated circuits.

Taiwan Semiconductor Manufacturing Co chairman and chief executive C C Wei speaks at a briefing session on the company’s December-quarter earnings in Taipei on January 16, 2025. Photo: Kyodo

At an earnings conference on Thursday, Wei said he was confident the Arizona factory would produce the same quality of chips as in Taiwan, despite various challenges and cost overruns. He also expected a smooth ramp-up process.