When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .
(Image credit: TSMC) One of the caveats of TSMC's manufacturing in the U.S. is that all wafers processed at Fab 21 in Arizona are shipped back to Taiwan for dicing, testing, and packaging, which is why processors fabbed in Arizona are not 100% U.S.-made. However, suppose the rumor published by Taiwan-based Liberty Times is correct. In that case, TSMC is repurposing land designated initially for one of its Fab 21 modules for its advanced packaging facility, thus accelerating its packaging capability in the U.S. and making 'all American TSMC chips' a reality before 2030.
Based on the latest expansion plan for the Arizona site announced in March , TSMC plans to build six Fab 21 modules, two advanced packaging facilities, and an R&D center to work on the foundry's existing technologies and tailor them for specific customers. Liberty Times claims that TSMC now intends to build its advanced packaging facility on the place originally intended for the Fab 21 phase 6. If construction proceeds according to the alleged plan, tool move-in could begin before the end of 2027, enabling the plant to enter a risk production phase shortly thereafter.
Even though modern advanced packaging facilities use cleanrooms and many tools that were used for chipmaking years ago, they are very different from advanced semiconductor production facilities, such as TSMC's Fab 21. Front-end fabs require huge, hyper-clean, multi-story cleanrooms to support atomic-scale patterning. In contrast, advanced packaging needs much smaller, lower-class spaces suitable for micron-scale bonding and RDL processes. Even state-of-the-art packaging facilities feature significantly smaller ISO 5-7 class cleanrooms compared to ISO 3-4 class cleanrooms in advanced fabs. Also, advanced packaging fabs require much lower chemical purity and use less power (unless we are talking about a massive facility, though).
Nvidia and TSMC produce the first Blackwell wafer made in the U.S.
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/semiconductors/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/semiconductors/tsmc-could-be-inching-closer-to-making-all-american-chips-report-says-it-is-accelerating-an-advanced-packaging-facility-in-arizona#main
- https://www.tomshardware.com
- FLUX.2 Image Generation Models Now Released, Optimized for NVIDIA RTX GPUs
- Why copper markets are feeling the pinch due to aggressive AI data center expansion — expansive buildout to demand 1.1 million tonnes of copper annually by 2030
- Zotac denies RTX 5070 Ti fan-related RMA and then offers to dispose of the GPU free of charge — the company claims 'irreversible' PCB damage and 'limited tools'
- NVIDIA Partners With Mistral AI to Accelerate New Family of Open Models
- Samsung Odyssey G7 S40FG75 40-inch ultra-wide curved gaming monitor review: Fast, gorgeous, and immersive
Informational only. No financial advice. Do your own research.