[News] TSMC: U.S. Chip Export Controls “Manageable”; Arizona Fabs Progress Ahead of Schedule

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Shortly after Biden’s latest announcement on the chip export control targeting processors made on 14nm, 16nm, or more cutting-edge nodes, TSMC’s Chairman C.C. Wei claimed that the impact would be “manageable” at the foundry giant’s earnings call today.

C.C. Wei noted that though TSMC has yet to come up with a comprehensive analysis about the new framework, the influence of the new chip export curbs would not be significant at first look.

He added that TSMC will work with the customers who might be under restrictions, and he believes that related permissions could be granted as long as the products are not used in the AI area. TSMC would closely collaborate with clients, especially those in the automotive, industrial and crypto mining sectors, to assure this, he noted.

In terms of TSMC’s progress in its Arizona fabs, Wei stated that TSMC pulls ahead of its schedule. The first fab, featuring 4nm, has entered high volume production in the fourth quarter of 2024, with yields on par with Taiwan. The second fab in Arizona, on the other hand, has also been working out smoothly as tools are moving in, he said.

Notably, advanced nodes below 3nm (N2, N2P and A16) at the second and third fabs are expected to start mass production in 2028 and 2030, respectively, according to TSMC.

However, at the earnings call, concerns have been brought up on the impact of overseas expansion on margins and depreciations. TSMC noted that in 2025, capacity utilization is expected to grow steadily, but gross margins will be impacted by overseas expansion, reducing margins by about 1%.

TSMC also added that U.S. fabs would more expensive due to smaller scale, higher supply chain costs, and a less mature ecosystem. Over the next five years, U.S. margins will be lower than overall margins by 2-3%, as noted by the company.

Read more

• [News] Biden Tightens Control on 14/16nm Chip Exports; Expands Blacklist to Include China’s Sophgo
• [News] NVIDIA Reportedly in Talks with TSMC to Produce Blackwell in Arizona, While Packaging Handled in Taiwan

(Photo credit: TSMC)