TSMC Reportedly Mulls Advanced Chip Packaging Facility in Arizona

TSMC is in talks with Arizona officials to build its chip packaging facility in the state, Katie Hobbs, governor of Arizona, said in Taipei after visiting the world’s No.1 foundry’s headquarters, reports Bloomberg. If the plan comes to fruition, then TSMC’s will have a vertically integrated chip production chain in the USA for the first time ever.

TSMC has built Fab 21 in Arizona and is currently installing production tools there. The company is also building up the second phase of the fab and has approved plans to invest $40 billion in these two production facilities. But the company apparently does not want to stop there and is discussing the possibility of building an advanced packaging fab in the state, too, as this will help it to assemble complex system-in-packages for its clients from the U.S. on American soil.

Traditionally, TSMC has declined to directly admit talks about a new production facility. In its statement, TSMC conveyed its gratitude for the productive interactions with Governor Hobbs and indicated that it remains optimistic about fostering even closer ties in the coming years.

“We believe the dialogues that we held during this visit will help us to work together even more closely in the future,” a statement by the company published by Bloomberg reads.

Hobbs joins a wider U.S. team visiting Taiwan, where conversations between authorities and businesses center on Taiwan’s pivotal position in the semiconductor industry. In addition to working with TSMC on chip production, Laurie E. Locascio, the Under Secretary of Commerce, mentioned that the U.S. is initiating R&D discussions with TSMC, aiming to integrate more technology from the world’s leading chip contract manufacturer domestically.