Tsmc Begins Producing 4: nanometer chips in Arizona, Raimondo says (updated)
10/01/2025 22:38
(Adds Raimondo quotes)
WASHINGTON, Jan 10 (Reuters) - Taiwan Semiconductor
Manufacturing Co 5425.TWO has begun producing advanced
4-nanometer chips for U.S. customers in Arizona, Commerce
Secretary Gina Raimondo told Reuters, a milestone in the Biden
administration's semiconductor efforts.
In November, Commerce finalized a $6.6 billion grant TSMC's
U.S. unit for semiconductor production in Phoenix, Arizona.
"For the first time ever in our country's history, we are
making leading edge four-nanometer chips on American soil,
American workers -- on par in yield and quality with Taiwan,"
Raimondo told Reuters in an interview saying it had begun in
recent weeks.
"That's a big deal -- never been done before, never in our
history. And lots of people said it couldn't happen," Raimondo
said.
A spokesperson for TSMC, which reports earnings next week,
declined to comment Friday.
In April, TSMC agreed to expand its planned investment by
$25 billion to $65 billion and to add a third Arizona fab by
2030.
Congress created a $52.7 billion semiconductor manufacturing
and research subsidy program in 2022.
Raimondo told Reuters in an earlier interview that
Commerce had to convince TSMC to boost its U.S. plans.
"It didn't happen on its own... We had to convince TSMC that
they would want to expand," Raimondo said.
TSMC will produce the world's most advanced 2-nanometer
technology at its second Arizona fab expected to begin
production in 2028. TSMC also agreed to use its most advanced
chip manufacturing technology called "A16" in Arizona.
The TSMC award from Commerce also includes up to $5 billion
in low-cost government loans.
Raimondo wants the United States to make 20% of world's
leading-edge logic chips by 2030 -- up from the 0% before TSMC
began production in Arizona.
Last month, Commerce finalized an award of $407 million to
help fund Amkor Technology's AMKR.O planned $2 billion
advanced semiconductor packaging facility in Arizona, which is
set to be the largest of its kind in the U.S.
Amkor's Arizona plant when fully operational will package
and test millions of chips for autonomous vehicles, 5G/6G and
data centers. Apple AAPL.O will be its first and largest
customer with the chips produced at a nearby TSMC facility.
(Reporting by David Shepardson;
Editing by Alistair Bell)
((David.Shepardson@thomsonreuters.com; 2028988324;))