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TSMC to Keep Advanced Tech Home, Slows US Transfer
16 Jan
Summary
- TSMC will keep its most advanced chipmaking tech in Taiwan.
- US mass production of new TSMC tech could take over a year.
- Company plans record $52 billion capital expenditure this year.
Taiwan Semiconductor Manufacturing Co. plans to continue developing and maintaining its most cutting-edge fabrication techniques in Taiwan, citing practical reasons. CFO Wendell Huang indicated that while the company is accelerating the transfer of advanced chipmaking expertise to the US, the newest technologies will remain at home. Mass production of these advanced technologies overseas is anticipated to take at least a year, even with expedited transfers.
The chipmaker, a key supplier to major tech firms, has committed to investing $165 billion to expand its US capacity. This expansion is driven by strong demand, particularly for AI-related applications, prompting TSMC to set a record capital expenditure budget exceeding $52 billion for the current year. The company aims to alleviate AI-induced supply constraints by stepping up its investments.
TSMC's Arizona factory is expanding, with plans for mass production in the second half of 2027, ahead of original expectations. Despite US officials' requests to move the latest tech to America, Taiwanese officials and TSMC maintain that their most advanced capabilities will stay in Taiwan. Currently, a significant technology gap exists between TSMC's Taiwanese and US operations, though production yields in Arizona are comparable to Taiwan's high standards.
