AMD Says It'll Be an Early Customer at TSMC's Troubled Arizona Fab

TSMC has faced some unexpected difficulties getting a new fab off the ground in Arizona. The company stated previously it's had to delay production at the new facility due to problems finding workers to install and operate the machines it will be using, which is a highly technical affair, to put it lightly. Despite the setback, AMD CEO Dr. Lisa Su says the company is already standing in line with its checkbook handy and is ready to buy the first chips that roll off the production line, which will likely be in the year 2025.

Su addressed TSMC's beleaguered Arizona fab at the Goldman Sachs 2023 Communacopia and Technology Conference, according to Tom's Hardware. At the conference, she said, "So, the Arizona factory is vital to us. We are going to be one of the early users, we are putting our first tape outs in shortly with the idea of being a significant user of Arizona. I think we will continue to look at the geographic diversity as an important piece of it." AMD is not alone in its desire to see TSMC diversify its manufacturing locations, as the entire world is understandably wary of the company's decision to produce all of its most cutting-edge technology solely at its Taiwan facilities.

This artists rendering shows what Fab 21 near Phoenix will look like, some day. Credit: TSMC

If China were to invade the island in the future, its impact on AMD, Nvidia, and Apple would be devastating and have alarming ripple effects throughout the global tech industry. However, TSMC has its customers by the lapel, as it's currently unrivaled in advanced semiconductor production. Samsung and Intel are still lagging by a generation or so, depending on who you ask. All its big partners, including Intel, need their manufacturing capabilities and have vehemently supported its expansion into the US to give the company more geopolitical stability. There's also the very real scenario where its Taiwan fabs are at their limit in the production of 4nm products, which is where the Arizona fab comes into the picture.

TSMC began constructing the Arizona facility in 2021, hoping to start manufacturing in 2024. However, the delays mentioned above have pushed that date back to 2025, by which time 4nm will be a mature process. It's also not assured the facility will have the necessary resources to succeed long-term, as Arizona is currently dealing with water shortages that could hinder its operation.

TSMC will also surely keep its most cutting-edge technologies in Taiwan, currently its 3nm FinFlex architecture. With Nvidia, AMD, and Apple supposedly in line for these chips already, the problem of them being made in Taiwan won't be resolved if the Arizona facility springs into action. Regardless, it sounds like AMD will be along for the ride and will probably have to tangle with Apple for the first "US-made" chips that roll out of the factory door.