TSMC's new Arizona, USA plant achieves yields 'on par' with world-leading plants in Taiwan

TSMC has achieved production yields at its new Arizona, USA facility that is "on par" with established, world-leading plants back in Taiwan, according to new reports.

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TSMC workers placing the final roof structure beam (source: TSMC)

In a new piece by Bloomberg, the outlet reports that TSMC's yield rate in trial production at its Arizona plant, its first advanced plant in the US, are similar to comparable plants in the southern city of Tainan, in Taiwan, "according to a person familiar with the company, who asked not to be identified discussing private corporate matters".

TSMC said it began engineering wafer production in April 2024, with its newer 4nm process node. TSMC doesn't discuss or disclose its yield rates on chips, with investors instead relying on TSMC's ability to maintain steady margins. TSMC says it can maintain gross margin rates at 53% or higher in the long run, and has continued keeping its net profit steady at above 36% for the last 4 years... and with it being the world-leader in chipmaking, I don't see that slowing down anytime soon.

In an email, TSMC said that its Arizona project is "proceeding as planned with good progression" with no comments on the yields, obviously, which is where Bloomberg's sources step in saying that they're comparable to the plants back in TSMC's home country of Taiwan.

• Read more: Intel trying to recruit senior engineers from TSMC Arizona
• Read more: TSMC to begin pilot program at its Arizona, USA for mass production end of 2024
• Read more: TSMC's second fab site in Arizona, USA celebrates its 'topping out' milestone

Why can TSMC do this, but Intel can't? Intel has been struggling to build chips in the US at its own fabs, using TSMC to build its new Lunar Lake and Arrow Lake CPUs. TSMC is now building a fab in Arizona and hits yields that are comparable to its world-leading Taiwan fabs, yet Intel can't. The work culture in Taiwan is a huge influence, years ago I reported that TSMC engineers in Taiwan called US engineers that visited Taiwan to train up for the new Arizona plant "babies".

• Read more: Taiwan says TSMC's engineers in the US are 'babies' for leaving Taiwan

At the time, an anonymous engineer also added that TSMC is building a fab in USA but 95% managers are from Taiwan local. All of them have been influenced by military-like culture for more than 10 years. Most of them refuse to adopt US culture because that is not how they got to their high level position. Will need more US managers to build fusion culture.