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TSMC's $65 billion Arizona facility can now match Taiwan production yields according to early trials


Taiwan Semiconductor Manufacturing Co. has reached a significant milestone in its expansion into the US. Recent trial production at the company's new Arizona facility has yielded results...

The big picture: The US is committed to establishing semiconductor manufacturing within its borders, and perhaps no effort is more crucial to this goal than TSMC's three-fab facility in Arizona. This development is a positive sign for the chipmaker's ambitious US project, which has faced delays and doubts about whether it could match the production efficiency of its Taiwanese operations. With production yields now on par with its facilities in Tainan, Taiwan, TSMC should be able to maintain its targeted gross margin rates of 53 percent or higher.

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