TSMC’s Arizona plant’s yield rate exceeds that of Taiwan, a historic moment for the United States to revive local chip production

In a recent online seminar, Rick Cassidy, President of TSMC’s U.S. operations, announced a significant achievement for the company’s first factory in Phoenix, Arizona. Cassidy shared with the audience that the initial yield of chips produced at this facility has exceeded that of similar-sized and similarly-processed factories in Taiwan by approximately four percentage points. This is a remarkable breakthrough for the U.S. chip manufacturing expansion effort, which had previously struggled with delays and labor disputes.

Yield is a critical metric in the semiconductor industry, directly impacting the economic viability of a chip factory as it determines how many market-ready chips can be produced from each wafer.

This accomplishment is a clear indication that the U.S. government’s initiatives to revitalize domestic semiconductor manufacturing are making headway. TSMC’s Arizona facility is expected to benefit from $6.6 billion in government subsidies, $5 billion in special loans, and a 25% tax credit. Currently, TSMC is set to build three wafer fabs in Arizona, although these financial incentives and support measures are still awaiting further review and approval from the U.S. government.

While a TSMC spokesperson declined to comment directly on Cassidy’s statements, they referred to remarks made by CEO C.C. Wei during an investor conference call last week. Wei mentioned that the first factory in the U.S. began producing engineering wafers using a 4-nanometer process in April, reporting highly satisfactory results with excellent yields. This milestone underscores TSMC’s robust manufacturing capabilities and execution strength, marking an important step for both the company and its customers.

TSMC serves as a major chip manufacturing partner for leading tech companies, including NVIDIA, AMD, Broadcom, and Apple.