TSMC says first advanced U.S. chip fab 'dang near back' on schedule. Here's an inside look.

Core Insights - TSMC's Arizona chip fabrication plant is the most advanced in the U.S. and Apple is its largest customer [1] - The initial investment for the plant has increased from $12 billion to $20 billion, with full production now expected in 2025 [2] - TSMC plans to invest a total of $65 billion in the Arizona site, including two additional fabs by the end of the decade [2] Investment and Production - The Arizona fab will produce 4-nanometer chips at a rate of 20,000 wafers per month, with each wafer costing upwards of $18,000 [4] - TSMC's stock value has risen due to increased wafer prices, reflecting the company's strong market position [4][5] - The U.S. currently manufactures only 10% of the world's chips, highlighting a significant reliance on TSMC's Taiwan fabs for advanced chip production [6] Challenges and Risks - The U.S. faces challenges in achieving self-sufficiency in semiconductor manufacturing, with potential geopolitical risks affecting supply chains [6][7] - TSMC's Arizona facility is designed to withstand earthquakes, addressing concerns raised by past natural disasters in Taiwan [8] Workforce and Resources - TSMC plans to hire at least 6,000 workers for its Arizona fabs, actively recruiting from universities across the U.S. [16][17] - The fab will require 4.7 million gallons of water daily, with plans to recycle 65% of that demand [18] - TSMC's energy needs for the first fab are equivalent to the power used by approximately 100,000 U.S. homes, raising concerns about transmission capacity in Arizona [19] Future Expansion - TSMC is likely to continue expanding its operations in the U.S., with plans for a third fab that may produce 2-nanometer chips [20][21] - The company is also broadening its global footprint with new fabs in Japan and Germany [20]