Chip factories in Arizona could produce 2nm chips starting in 2028, claims TSMC

Things haven’t quite gone according to plan with TSMC’s chip factories in Arizona, but the company claims that the second plant could be producing 2nm chips in the US as early as 2028. Previously announced plans called for only 3nm chips by this date.

However, the Taiwanese government admits that 2nm chip production in Arizona could be delayed until 2029 or 2030…

Arizona Chip Factories: The Story So Far

TSMC’s announcement that it would build a chip manufacturing plant in Arizona was hailed as a major success of the US CHIPS Act, which aims to free the US from dependence on China for the supply of advanced chips and create jobs for US workers. Apple proudly announced that it would be purchasing American-made chips for some of its devices.

However, the shine soon began to wear off. The factory will only be able to produce larger process chips suitable only for older Apple devices, and it wasn’t long before TSMC was demanding bigger subsidies and fewer rules.

The project is behind schedule and over budget as production from 2024 has already been pushed back to 2025. There is talk that US-made chips cost more than those made in Taiwan, which could mean Apple would buy fewer of them than originally expected.

U.S. job creation first came into question when TSMC decided to hire around 500 Taiwanese workers to speed up construction. The dispute quickly turned ugly, with nearly half of the company’s employees hired from Taiwan and U.S. workers filing a discrimination lawsuit in response.

2nm chip production in the USA

TSMC reserves its most advanced chip manufacturing facilities for its home base in Taiwan, while U.S. factories make chips using larger processes for older devices.

The plan calls for Arizona factories to lag behind Taiwan by three to five years, which could result in them producing 2nm chips by 2028. It is believed that Apple hopes to use 2nm chips in the iPhone 17, although it is unclear whether this will be possible.

TrendForce reports that TSMC has shared its more ambitious plans with the US government, but the Taiwanese government has admitted it may not work out.

Information submitted by TSMC to the US Department of Commerce shows that production of the 2nm process in the US is expected to begin as early as 2028.

TSMC’s plan to produce its 2nm process in the US has attracted a lot of attention. The report addresses this development and highlights statements from Wu Cheng-Wen, Minister of Taiwan’s National Science and Technology Council, who recently noted that the timeline for TSMC to bring 2nm technology to the US is likely falls to 2028 and could be delayed until 2029 or 2030.

The U.S. has awarded TSMC up to $6.6 billion in CHIPS Act funds to support construction of the Arizona plants. The first of these is expected to begin producing 4nm chips for older Apple devices in the first half of next year. It is the second facility intended to produce 2nm chips.

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