Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) on Saturday said that it would hold a ceremony on Thursday to mark the beginning of mass production using its 3-nanometer process.
The company is to mark the placing of the final beam at its Fab 18 in the Southern Taiwan Science Park (南部科學園區) in Tainan.
It would also detail its plans for expanding 3-nanometer production at the facility in the coming years, TSMC said.
Photo: Lam Yik Fei, Bloomberg
The fab currently mass produces chips using the 5-nanometer process.
It is unusual for TSMC to hold a ceremony to mark the beginning of commercial production of a new technology.
Analysts have said that the ceremony aims to announce TSMC’s intention to continue using Taiwan as a hub for research and development (R&D) and production, despite its overseas investments.
Speculation has risen that the company could relocate its production and R&D centers to the US.
The rumors arose after TSMC on Dec. 6 said at a tool-in ceremony for its 12-inch wafer plant in Phoenix, Arizona, that it would increase its planned US$12 billion investment there to US$40 billion to build a 3-nanometer fab by 2026, in addition to its planned 4-nanometer plant due to be completed in 2024.
The concerns intensified after TSMC sent a large group of Taiwanese engineers to support the Arizona plant, raising investors’ fears that the move could undermine the firm’s base in Taiwan.
The planned Arizona plants are expected to produce more than 600,000 wafers a year, TSMC has said.
Last week, TSMC chief executive officer C.C. Wei (魏哲家) told a forum held by the Mount Jade Global Science and Technology Association in Taipei that there was “no chance” that a single wafer fab would give a location a technical advantage over other semiconductor manufacturing sites.
TSMC plans to start mass producing chips using the N3E process next year. The process is based on the 3-nanometer technology and produces more efficient chips with a better yield rate.
The company is also developing a more sophisticated 2-nanometer process and plans to build a 2-nanometer fab in Hsinchu, with mass production scheduled to begin in 2025.
The 3-nanometer process uses 16-nanometer fin field-effect transistor technology, which is a 3D transistor structure that allows a chip to run faster using the same amount of energy or to run at the same speed on reduced power.
Chips made using the technology are 10 to 15 percent faster and 25 to 30 percent more energy-efficient than those produced with the 5-nanometer process, whose mass production started last year.
Apple Inc and Intel Corp are expected to place orders for chips made with TSMC’s 3-nanometer process, analysts have said.
The 2-nanometer process would be the first technology in which TSMC employs a gate-all-around structure, which reduces undesirable variability and mobility loss, making the technology the most competitive and efficient on the market, the company has said.
Early this month, Wayne Wang (王永壯), director general of the Hsinchu Science Park Bureau, said TSMC has plans to build a 1-nanometer process fab in the Longtan (龍潭) section of the Hsinchu Science Park (新竹科學園區).
TSMC has yet to confirm Wang’s announcement.
HANDOVER POLICY: Approving the probe means that the new US administration of Donald Trump is likely to have the option to impose trade restrictions on China US President Joe Biden’s administration is set to initiate a trade investigation into Chinese semiconductors in the coming days as part of a push to reduce reliance on a technology that US officials believe poses national security risks. The probe could result in tariffs or other measures to restrict imports on older-model semiconductors and the products containing them, including medical devices, vehicles, smartphones and weaponry, people familiar with the matter said. The investigation examining so-called foundational chips could take months to conclude, meaning that any reaction to the findings would be left to the discretion of US president-elect Donald Trump’s incoming team. Biden
INVESTMENT: Jun Seki, chief strategy officer for Hon Hai’s EV arm, and his team are currently in talks in France with Renault, Nissan’s 36 percent shareholder Hon Hai Precision Industry Co (鴻海精密), the iPhone maker known as Foxconn Technology Group (富士康科技集團) internationally, is in talks with Nissan Motor Co’s biggest shareholder Renault SA about its willingness to sell its shares in the Japanese automaker, the Central News Agency (CNA) said, citing people it did not identify. Nissan and fellow Japanese automaker, Honda Motor Co, are exploring a merger that would create a rival to Toyota Motor Corp in Japan and better position the combined company to face competitive challenges around the world, people familiar with the matter said on Wednesday. However, one potential spanner in the works is
HON HAI LURKS: The ‘Nikkei’ reported that Foxconn’s interest in Nissan accelerated the Honda-merger effort out of fears it might be taken over by the Taiwanese firm Nissan Motor Co has become the latest buyout target in Japan as it explores a merger with Honda Motor Co and faces an overture from Hon Hai Precision Industry Co (鴻海精密), known as Foxconn Technology Group (富士康科技集團) internationally. Shares in Nissan yesterday jumped 24 percent, the most on record, to hit the daily limit, after the two Japanese automakers acknowledged that talks are ongoing to better position themselves for competitive challenges during a time of upheaval in the global auto industry. Foxconn — a Taipei-based manufacturer of iPhones, which has been investing heavily in factories to build electric vehicles — has also
CHIP SUBSIDY: The US funding would help alleviate the financial pressure from building two fabs in the US and should lift gross margins in 2026, the company said GlobalWafers Co (環球晶圓), the world’s third-largest silicon wafer supplier, yesterday said it is to receive US$406 million in subsidies from the US Department of Commerce for two new US fabs under the CHIPS and Science Act, with the first batch of the funds likely coming next year. The grant represents 10 percent of the planned investments of US$4 billion in advanced semiconductor wafer manufacturing facilities in Texas and Missouri, GlobalWafers said. The commerce department is to disburse the funds based on the completion of project milestones over a multiyear timeframe, the company said. Along with the tax credit, which is equal to