Taiwan Semiconductor Manufacturing Co. has achieved early production yields at its first plant in Arizona that surpass similar factories back home, a significant breakthrough for the US expansion project. The share of chips manufactured at TSMC's facility in Phoenix that are usable is about 4 percentage points higher than comparable facilities in Taiwan, Rick Cassidy, president of TSMC's US division, told listeners on a webinar Wednesday. The success rate, or yield, is a critical measure in the semiconductor industry because it determines whether companies will be able to cover the enormous costs of a chip plant. The accomplishment is also a sign of progress for President Joe Biden's efforts to revitalize American semiconductor manufacturing. TSMC, the main chip manufacturing partner for Nvidia Corp. and Apple Inc., is in line to win $6.6 billion in government grants and $5 billion in loans—plus 25% tax credits—to build three fabrication facilities in Arizona. The award from the 2022 Chips and Science Act isn't yet finalized. US President Joe Biden at the Intel Ocotillo Campus on March 20 in Chandler, Arizona. Biden announced $8.5 billion in federal funding from the CHIPS Act for Intel to manufacture semiconductors in Arizona. Photographer: Rebecca Noble/Getty Images North America |
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