TSMC Fast-Tracks US Fabs, Europe and Japan Fall Behind

[AleksandarK]

TSMC is adjusting its global investment strategy in response to geopolitical pressures and changing market demands. Encouraged by the US government, the world's largest contract chipmaker has moved up completion dates for its Arizona fabrication plants by as much as six months. This shift is designed to address the growing domestic needs in defense, artificial intelligence, and high-performance computing. Originally committed to $65 billion in US manufacturing, TSMC recently increased that total to $165 billion. The expanded plan includes three additional fabs, two advanced packaging facilities, and a research center, all of which are expected to begin operation by 2030. Company executives argue that on-site production will help alleviate supply-chain bottlenecks and reduce cost volatility for American customers, even though chips made in Arizona will carry a premium compared with those produced in Taiwan.

At the same time, TSMC's projects in Japan and Germany have encountered difficulties. In Kumamoto, Fab 1 has not reached its planned utilization levels, and persistent traffic and local infrastructure issues have delayed the start of construction for Fab 2. Some point to labor shortages and conservative order forecasts from automotive and electronics clients as additional factors. In Europe, a slowdown in auto production has weakened demand for semiconductor capacity. TSMC's joint venture with Bosch, Infineon, and NXP in Germany now faces potential delays as partner layoffs and declining sales of combustion engines undermine initial growth expectations. Despite these setbacks, Taiwan remains central to TSMC's operations, hosting nearly half of its nine facilities under construction. For now, TSMC's pause in Japan and Europe appears to be a strategic reallocation of resources to the US, where policy support and urgent demand intersect.



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[Verpal]

TSMC Kumamoto is quite interesting, it has same vibe of Japanese economic boom entirely localized in the tiny bubble around TSMC factory. Rising property price, flood of foreign worker and skilled worker from entire prefecture.....

Hopefully Japan can get a W out of this, as long as government don't do anything stupid it should be alright.

 

[Rightness_1]

It will be funny to see how TSMC react to their Chinese bosses... Europe and America will be the only fabs they still have control over... A very shortsighted, greedy company.

 

[TumbleGeorge]

Europe always in the tail end together with Africa.

 

[A_macholl]

Europe always in the tail end together with Africa.

Thanks to EUnion. They make restrictions everywhere they can

 

[docnorth]

Encouraged by the US government...

"Readers are encouraged (not by TPU obviously) to not comment further..."

 

[R0H1T]

Yeah putting a (proverbial) gun to someone's head will do that!

 

[Dr. Dro]

Encouraged by the US government...

"Readers are encouraged (not by TPU obviously) to not comment further..."

Heh heh... I mean, you are quite encouraged not to comment further, because we all know where those threads tend to end

 

[Tomorrow]

Thanks to EUnion. They make restrictions everywhere they can

They also actually do something about data protection of their users.
Every system has it's pros and cons.

 

[remixedcat]

They can buy the Columbus fab off Intel and actually complete it. Intel is draggin ass on it