Source – Bloomberg
TSMC is due to make more advanced 4-nanometer chips at its new Arizona plant, a departure from previous promises of less-advanced 5-nanometer chips. Apple will make up 1/3 of the use of the chip output from the plant as it seeks to reduce its dependence on Taiwan-manufactured chips due to geopolitical risks. TSMC’s pivot rests on efforts by the US government to boost domestic chip production over that of China with the Chips and Science Act. Related is urging from Apple, AMD, and Nvidia that also contributed to the decision.
This is great for TSMC. Hedging geopolitical risk and taking in subsidies from the production at the Arizona plant is a win-win for all parties involved, expect for China…
