[News] TSMC Speeds Up Arizona Expansion, yet U.S. Packaging Plant Sites Reportedly Remain Up in the Air

TSMC is fast-tracking its U.S. expansion with a $100 billion investment covering three fabs, two advanced packaging plants, and an R&D center. However, supply chain insiders suggest the locations for the two U.S.-based packaging plants have yet to be decided, according to Liberty Times.

TSMC confirmed the land for the two advanced packaging plants is still under review, per Liberty Times. As noted by the report, TSMC owns 1,100 acres (about 445 hectares) in Arizona, planned for six fabs. However, the two advanced packaging plants and one R&D center will likely need separate sites, the report adds.

NVIDIA had confirmed its 4nm chips started production at TSMC’s Arizona plant in January, but as Reuters reported, these chips still need to be shipped back to Taiwan for advanced packaging.

In the short term, TSMC still lacks advanced packaging capacity in the U.S. Despite signing an MOU with Amkor last October to provide InFO and CoWoS support in Arizona, that capacity isn’t ready yet, according to Liberty Times.

Advanced Packaging Plant Build: No Easy Task

Notably, Central News Agency previously reported that setting up such advanced packaging facilities could take at least four years. One key hurdle could be the need for metal bumping infrastructure in the U.S.—CoWoS, for instance, relies heavily on copper pillar technology. Just as crucial, the report emphasized, is the establishment of a complete supply chain for packaging materials.

CNA indicated that TSMC’s advanced packaging includes SoIC (more complex and costly), CoWoS and InFO (mainly in Taiwan). To meet the surging demand of its key clients like Apple, NVIDIA, and AMD, TSMC may build CoWoS and InFO lines in the U.S. first, the report added.

Anue notes that TSMC’s Fab 21 Phase 2 facility in Arizona is installing cleanrooms and electromechanical systems, aiming for trial production by late 2026, with Phase 3 set to break ground mid-year, targeting trial runs in 2027.

It is worth noting that TSMC typically pairs every three fabs with one advanced packaging plant, Anue suggests. After Phase 3 wraps up, construction of a CoWoS-enabled packaging facility is expected to follow, according to Anue.

Read more

• [News] TSMC’s 2nm Wafers Rumored to Soar to $30K Per Unit, Yet CSP Giants Reportedly Rush to Adopt by 2027
• [News] TSMC’s $165B Arizona Investment to Create 12,000 Jobs Once All Facilities Are Operational

(Photo credit: TSMC)