TSMC is considering building advanced packaging facilities in the United States
Currently, Taiwan Semiconductor Manufacturing Company (TSMC) is in the midst of constructing its new wafer fabrication facility, Fab21, in Arizona, USA. Initially, upon completion of the first phase, the production line was slated to commence operations in 2024, employing the N4 and N5 series processes. However, due to a confluence of factors, the onset of large-scale production at Fab21 might be deferred to 2025.
While TSMC boasts cutting-edge wafer fabrication capabilities, there’s a discernible absence of corresponding packaging facilities in the region. As the miniaturization of semiconductor circuits becomes increasingly challenging, Chiplet technology is gaining prominence. Advanced packaging has, consequently, emerged as a focal point for numerous foundries in recent times. According to Bloomberg, TSMC has initiated negotiations with the local Arizona government regarding the potential establishment of a state-of-the-art packaging facility, envisioning the creation of a vertically integrated semiconductor production chain in the future.
In recent months, artificial intelligence tools, spearheaded by ChatGPT, have garnered global attention, leading to a pronounced surge in demand for data center GPUs such as NVIDIA’s A100 and H100. This escalating demand has strained TSMC’s advanced packaging capacities, prompting them to place emergent orders for new equipment to meet NVIDIA’s burgeoning needs.
TSMC inherently recognizes the necessity to augment its advanced packaging capacities. Given that Fab21 caters predominantly to local clientele, it would be pragmatically apt to establish concomitant advanced packaging facilities. Yet, TSMC has refrained from confirming any negotiations concerning the advanced packaging facility, expressing only an optimistic stance towards fostering tighter collaborations in the ensuing years.