TSMC produces semiconductors for companies such as AMD, Nvidia and Apple. However, the new plant in Arizona is already working at full capacity until 2030.
TSMC is one of the largest and most important semiconductor manufacturers in the world. TSMC's Plant 4 is located in the US state of Arizona and has a surprising problem: not only is it currently fully booked, it is already fully reserved with orders until 2030.
Semiconductors play a major role in the economy, as the components are found in every electronic device. From your fridge to your cell phone to the graphics card in your gaming PC.
The Taiwan Economy Daily reports that important customers are already reserving capacities and products that have not even been produced yet.
Due to geopolitical reasons, the location in the USA is in demand like never before
Why is there so much interest? There are mainly geopolitical reasons. TSMC continues to produce most of its semiconductors in Taiwan, but China keeps saying that it wants to incorporate the island. For many companies that need semiconductors for their products, the plants in Taiwan therefore represent a certain risk.
The alternative for many manufacturers is therefore the plant in Arizona, a safe US state. However, the capacities are already fully utilized and, on top of that, are said to be limited to just a few exclusive customers: NVIDIA, AMD and Apple
TSMC has therefore been investing a lot of money in production lines in the USA for years. The total investment is expected to rise to half a trillion dollars, and this also includes other suppliers such as Foxconn and Quanta, who are also building their production facilities in the USA.
Anyone looking to buy a gaming PC or upgrade their old machine will have to dig deep into their pockets. Memory in particular, which used to be one of the cheapest components, is absurdly expensive at the moment. And it will probably stay that way for a while, according to experts: RAM is incredibly expensive at the moment, and market researchers are certain that it will stay that way for a while yet.
