TSMC’s US Operations Surge as All Fabs Are Fully Booked; Intel Foundry Remains on the Sidelines

TSMC is currently making headlines in the United States as leading technology companies scramble to secure orders from its manufacturing facilities, leading to an overwhelming bottleneck in production capacity.

High Demand for TSMC’s U. S.Facilities Amid Geopolitical Concerns

As the global supply chain faces unprecedented challenges, many enterprises are turning to domestic production in the U. S.to safeguard their operations. This shift has triggered a dramatic surge in demand for semiconductor manufacturing within the region. TSMC has adeptly responded to this trend, investing over $100 billion to expand its Arizona facility, enhancing its capacity to produce advanced semiconductor nodes. Recently, a report from Taiwan Economic Daily indicated that TSMC’s U. S.facilities are now completely booked by major players like Apple and NVIDIA, even following their capacity expansions.

The driving force behind this escalating interest in TSMC’s U. S.operations lies in the desire of tech firms to mitigate geopolitical risks, particularly in the context of Taiwan’s sensitive political climate. By manufacturing domestically, companies can also gain favorable leverage from U. S.policies, a strategy that companies like NVIDIA and Apple are embracing, as evident in their multi-billion dollar investments in the American market. TSMC is reaping significant rewards from this momentum, with quarterly profits reflecting strong growth prospects.

TSMC has ambitious plans for its U. S.operations, including the transfer of cutting-edge technology for new manufacturing nodes. The company aims to produce the advanced A16 (1.6nm) process domestically and is expected to account for as much as 30% of the 2nm supply in the United States. This commitment positions the U. S.as a critical focus for TSMC’s future endeavors. Furthermore, TSMC plans to establish a dedicated research and development center along with an advanced packaging facility in the country, reinforcing its role as a strategic alternative to its operations in Taiwan.

Historically, the U. S.chip industry has been largely dominated by Intel, which was seen as the primary driver of domestic semiconductor production. However, the TSMC-Trump arrangement has substantially shifted this dynamic, introducing new competition for Intel in a market they previously considered theirs. Although Intel is optimistic about their upcoming nodes, particularly the much-anticipated 18A process, they will face increased challenges in reclaiming their former dominance in an evolving landscape.

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