New Delhi [India], January 16 (ANI): Taiwan Semiconductor Manufacturing Co. (TSMC) moved forward the mass production schedule for its second wafer fab in Arizona to the second half of 2027. According to a report by Focus Taiwan, Chairman & CEO C.C. Wei announced the adjustment from the previously planned 2028 timeline during an investor conference on Thursday. Wei stated the decision to accelerate the schedule followed strong demand from American clients who urged the company to hasten production.

The chairman confirmed that construction of a third fab in Arizona already started, with equipment installation scheduled to begin later this year. The company is currently applying for a permit to build a fourth fab and an advanced IC assembly plant. TSMC is investing USD 100 billion to construct three more fabs, two IC assembly plants, and a research and development center.

Regarding expansion flexibility, Wei noted that TSMC acquired a large parcel of land in Arizona. He said the company aims to build the Arizona complex into a 'megafab cluster' to meet demand for chips used in smartphones, artificial intelligence applications, and high-performance computing devices.

While addressing reports of further commitments linked to potential tariff reductions, Wei did not respond directly but emphasized the flexibility provided by the new land acquisition.

The company's international expansion includes a facility in Kumamoto, Japan, where the first fab started mass production at the end of 2024. Wei said construction of a second Japanese fab began, though the schedule for commercial production depends on client needs and market conditions. Similarly, construction in Dresden, Germany, proceeded well, with mass production timelines also contingent on market demand.

In Taiwan, TSMC continued building several fabs in Hsinchu and Kaohsiung using the advanced 2-nanometer process. Mass production of the 2nm process started in the fourth quarter of last year, and Wei said that 'due to strong demand, production will accelerate this year.'

Chief Financial Officer Wendell Huang noted that as the 2nm process ramps up, depreciation costs are expected to rise and 'affect TSMC's gross margin by 2-3 percentage points this year.'

'While TSMC continues to invest in Taiwan, Wei said he has concerns over whether the power supply will meet the needs of the company's expansion. In response, the Ministry of Economic Affairs said there was 'no need to worry about power supply in the country,' citing its own generation and demand projections for 2032, without providing supporting figures,' the report said. (ANI)