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(Reuters) — Taiwan Semiconductor Manufacturing Co (TSMC) is planning to construct a number of extra chipmaking factories within the U.S. state of Arizona past the one at the moment deliberate, three folks acquainted with the matter informed Reuters.

TSMC, the world’s largest contract chipmaker, introduced in Could 2020 it will construct a $12 billion manufacturing facility in Arizona, an obvious win by the Trump administration in its push to wrestle international tech provide chains again from China.

TSMC is organising a 12-inch wafer fabrication plant in Phoenix, and the ability is predicted to start out quantity manufacturing in 2024, Taiwan’s funding fee of the ministry of financial affairs, which permitted the funding, stated in December.

TSMC manufactures the majority of its chips in Taiwan and has older chip services in China and the U.S. state of Washington.

Three sources acquainted with the matter, talking on situation of anonymity as they weren’t authorised to talk to the media, informed Reuters that as much as 5 further fabs for Arizona are being deliberate.

The preliminary fab is comparatively modest by business requirements, with a deliberate output of 20,000 wafers — every of which comprises 1000’s of chips — each month utilizing the corporate’s most subtle 5 nanometre semiconductor manufacturing expertise.

It’s not clear how a lot further manufacturing capability and funding the extra fabs may characterize, and which chip manufacturing expertise they’d use.

TSMC final month stated it deliberate to speculate $100 billion over the subsequent three years to extend manufacturing capability, although it didn’t give particulars.

One particular person with direct data of the matter informed Reuters the enlargement was in response to a request from the U.S., however declined to offer additional particulars.

“America requested it. Internally TSMC is planning to construct as much as six fabs,” the particular person stated, including that it was not doable to provide a timeframe.

The Biden administration is making ready to spend tens of billions of {dollars} to help home chip manufacturing. Below present laws, international corporations are eligible for these funds, however whether or not they may finally obtain it’s an open query.

A second particular person acquainted with the plans stated the corporate had already made positive there was sufficient house for enlargement once they obtained the land for the primary plant.

“It’s to allow them to construct six fabs,” the supply stated.

The third particular person, from a TSMC provider concerned within the Arizona mission, stated TSMC had informed them the plan was to construct a complete of six fabs over the subsequent three years.

Reuters was not in a position to independently affirm the timeframe.

TSMC referred to feedback by CEO C.C. Wei on an earnings name final month, saying the corporate was beginning chip manufacturing in Arizona in 2024 with a 20,000 wafer per thirty days 5-nanometer expertise.

“However in reality, we’ve got acquired a big piece of land in Arizona to offer flexibility. So additional enlargement is feasible, however we are going to ramp as much as Section 1 first, then based mostly on the operation effectivity and value economics and in addition the purchasers’ demand, to determine what the subsequent steps we’re going to do.” Requested whether or not the deliberate enlargement was due to a request from the USA, TSMC stated it was “undecided” what was meant by “requests” coming from the U.S. aspect and that it’s going to determine subsequent steps based mostly on operational effectivity, price economics and buyer demand.

“As soon as there may be any official determination, we are going to disclose it accordingly.”


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