After months of anticipation, TSMC’s new Arizona plant has reportedly achieved yield rates in 4nm chip production comparable to its Taiwanese facilities, according to sources cited by Bloomberg. The news marks a significant milestone for TSMC, which began pilot production at the Arizona site in April, though the company has remained tight-lipped on specifics, only confirming that the project is progressing according to plan.
The term “yield” refers to the percentage of chips produced from a silicon wafer that meet quality standards, a crucial metric that dictates the financial viability of semiconductor manufacturing. Achieving high yields is essential for TSMC to maintain its strong profit margins, which investors have come to expect. Over the past four years, TSMC’s margins have stayed above 36%, with a long-term target of 53%.
TSMC’s Arizona project—expected to eventually house three state-of-the-art fabrication plants—has faced hurdles, including delays caused by a skilled labor shortage and cultural differences between its U.S. and Taiwanese teams. Originally, the first facility was scheduled to begin mass production in 2023, but that timeline has now shifted to 2024.
The U.S. government has shown substantial financial support for the venture, allocating $6.6 billion in subsidies and $5 billion in concessional loans. The total project cost could balloon to $65 billion, reflecting the immense scale of the effort to boost American chip manufacturing capacity. Despite the early challenges, this recent progress brings TSMC closer to becoming a key player in the U.S. semiconductor landscape.