The new facility will be used to manufacture 3nm chips, according to the paper, which cites anonymous sources “familiar with the expansion plans.” The scale of this project is expected to be comparable to the existing plant. Reports last year suggested that TSMC was already considering constructing up to five additional semiconductor factories in Arizona, on top of the one just completed, which is not scheduled to start up production of chips until 2024. The move to build another plant comes despite the Taiwanese chip behemoth announcing recently that it was cutting back on its capital investment budget in the face of a market slowdown which led to TSMC predicting that Q4 revenue growth will likely be flat. However, the fact that TSMC is still considering further facilities in Arizona could be seen as vindication that the US CHIPS Act, which includes subsidies and other incentives for semiconductor companies like TSMC to build on American soil, is having the desired effect.
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