Taiwan Semiconductor Manufacturing Co. has started manufacturing cutting-edge four-nanometer chips for American consumers in Arizona, according to Commerce Secretary Gina Raimondo.
TakeAway Points:
- Taiwan Semiconductor Manufacturing Co. has begun producing advanced four-nanometer chips for U.S. customers in Arizona.
- Late last year, Commerce finalized a $6.6 billion grant to TSMC’s US unit for semiconductor production in Phoenix, Arizona.
- An Italian spokesperson for Elon Musk’s aerospace companies stated that any possible agreement reached with the billionaire’s Starlink for secure satellite communications would give Italy complete control over its data.
TSMC Starts Manufacturing 4-nanometer Chips
In November, Commerce finalized a $6.6 billion grant to TSMC’s US unit for semiconductor production in Phoenix, Arizona.
“For the first time ever in our country’s history, we are making leading-edge four-nanometer chips on American soil, American workers—on par in yield and quality with Taiwan,” Raimondo told Reuters in an interview, saying it had begun in recent weeks.
“That’s a big deal—never been done before, never in our history. And lots of people said it couldn’t happen,” Raimondo said of the previously undisclosed production start.
A spokesperson for TSMC, the world’s largest contract chipmaker and a major supplier to Apple and Nvidia, which reports earnings next week, declined to comment Friday.
In April, TSMC agreed to expand its planned investment by $25 billion to $65 billion and to add a third Arizona fab by 2030.
Congress created a $52.7 billion semiconductor manufacturing and research subsidy program in 2022. Commerce convinced all five leading edge semiconductor firms to locate fabs in the United States as part of the program.
Raimondo said earlier that Commerce had to convince TSMC to boost its U.S. plans.
“It didn’t happen on its own… We had to convince TSMC that they would want to expand,” Raimondo said.
TSMC will produce the world’s most advanced two-nanometer technology at its second Arizona fab, expected to begin production in 2028. TSMC also agreed to use its most advanced chip manufacturing technology called “A16” in Arizona.
The TSMC award from Commerce also includes up to $5 billion in low-cost government loans.
Raimondo wants the United States to make 20% of the world’s leading-edge logic chips by 2030—up from the 0% before TSMC began production in Arizona.
In April, Commerce said TSMC expects to begin high-volume production in its first U.S. fab by the first half of 2025.
Last month, Commerce finalized an award of $407 million to help fund Amkor Technology’s planned $2 billion advanced semiconductor packaging facility in Arizona, which is set to be the largest of its kind in the U.S.
Amkor’s Arizona plant, when fully operational, will package and test millions of chips for autonomous vehicles, 5G/6G, and data centres. Apple will be its first and largest customer with the chips produced at a nearby TSMC facility.
Italy will fully control data in any Starlink deal
Italy would have full control of its data under any potential deal struck with Elon Musk’s Starlink for secure satellite communications, an Italian representative for the billionaire’s aerospace businesses said.
Rome is considering the use of Musk’s telecommunications systems to provide encrypted communications between the government, Italian diplomats and defence officials operating in risky areas.
The project has been sharply criticised by opposition parties, questioning whether the handling of such communications should be entrusted to companies owned by the U.S. tech billionaire.
Starlink, part of Musk’s SpaceX aerospace business, has 6,700 active satellites in low-Earth orbit and is a dominant force in the sector.
Italy is considering a five-year deal worth a total 1.5 billion euros ($1.6 billion), a source with knowledge of the matter said.
“Data would remain in the full control of Italian institutions, which would be able to use U.S. technology but at the same time protect national interest”, Andrea Stroppa, an adviser for Elon Musk told Italian state broadcaster RAI late on Thursday.
He did not elaborate further and added that discussions with the government had started before Prime Minister Meloni took office, in October 2022.
The right-wing leader, who has come under fire from opposition over the talks given her good relationship with Musk, dismissed concerns that these ties would have any influence in the evaluation of the project.
