[News] ‘Taiwan+1’ Accelerates, Igniting U.S. Investment Surge in TSMC Supply Chain

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With Trump’s inauguration in January, “Made in America” is expected to dominate, driving an urgent push for semiconductor packaging and equipment companies to relocate to North America. Coupled with TSMC’s Arizona plant set to start mass production early next year, the Commercial Times reports that industry insiders foresee a surge in investments across the North American semiconductor supply chain.

TSMC’s Arizona fab is in the final stages of preparing for 4nm production, with a projected monthly capacity of 20,000 to 30,000 wafers. The company previously signed an MOU with Amkor Technology, a partnership widely seen as supporting advanced and back-end packaging efforts.

On November 8, however, leading packaging and testing company ASE also announced plans to set up a facility in Mexico, aiming to offer advanced packaging services for TSMC’s U.S.-produced chips.

Industry sources cited by Commercial Times speculate that ASE’s Mexico plant, once complete, could compete with Amkor for TSMC’s packaging and testing orders from the Arizona fab. Following the packaging process, the chips could be delivered directly to U.S.-based OEM/ODM partners, including Foxconn, Wistron, and Inventec, for final product assembly, completing the “Made in America” manufacturing chain.

The report also highlights TSMC’s stronghold on advanced packaging technologies such as 3D Fabric and SoIC, required for 2nm production, as well as SoW (system-on-wafer) technology. To meet customer demands, TSMC may need to establish in-house advanced packaging capabilities in the U.S. for even more advanced processes.

TSMC’s advanced packaging line is already highly automated, with optimized production flows reduced from over 300 steps to just over 200, and its gross margin is approaching the company average. The Commercial Times quotes industry experts who suggest that setting up advanced packaging capacity in the U.S. should be straightforward for TSMC, given its extensive experience in wafer fab construction, making it a matter of time.

(Photo credit: TSMC)