TSMC has completed a lengthy five-year process to establish its initial module, Fab 21, located near Phoenix, Arizona. This timeline is notably extended when compared to the average duration for constructing facilities in Taiwan. However, with experience gained from this project, TSMC is poised to accelerate the development of its U.S. fabrication plants to approximately two years, similar to its Taiwan operations, according to reports from Nikkei.
Challenges Faced During Initial Construction
The extended timeline for Fab 21 module 1 was attributed to various challenges, including labor shortages, rising expenses, and cultural differences. Now that these obstacles have been addressed, TSMC aims to replicate Taiwan’s speed with the subsequent modules. While no official announcement has confirmed this accelerated pace, Nikkei indicates that construction of Fab 21 module 3 is scheduled to commence this year.
Current Status and Future Plans
TSMC is in the process of completing equipment installations for Fab 21 module 1, and will soon shift focus to Fab 21 module 2 upon its completion. The company anticipates initiating trial chip production with its advanced 3nm-class processes (N3B, N3E, N3P, N3X, etc.) at module 2 by 2026, followed by high-volume production by 2028. This timeline aligns with the company’s strategic objectives.
Looking Ahead: Fab 21 Module 3
If TSMC can indeed start construction on the 2nm-capable Fab 21 module 3 within the planned two-year window, it could significantly enhance its capacity for producing chips utilizing the N2-series and A16 (1.6nm-class) process technologies in the U.S. A fully equipped facility by the latter half of 2027 would enable technology transfers from Taiwan, potentially starting trial production in 2028 and full-scale production in 2029.
Equipment Procurement Concerns
A major consideration in this expedited timeline is the sourcing of necessary manufacturing tools. Companies like ASML and Applied Materials face considerable backlogs, complicating TSMC’s efforts to obtain their equipment in a timely manner. Despite their desire to expand U.S. production capabilities, the challenges in securing rapid delivery of essential fabrication tools remain a significant hurdle.