TSMC Already Manufactures Apple’s A16 Bionic SoC in the U.S. This Is Just the Beginning of the Semiconductor Company’s Transformation

TSMC’s controversial Fab 21 semiconductor plant near Phoenix is already making chips: It’s producing the A16 Bionic SoCs for Apple. This facility has been in the spotlight for months because of the many problems TSMC has had to deal with during its construction and start-up. The Fab 21 plant was supposed to begin full-scale IC production in 2024 but won’t until 2025.

One reason for this delay is the company’s difficulty in finding the skilled workers it needs. According to Fortune, TSMC has earned a reputation for a “brutal” corporate culture, and many local workers appear to be intimidated by this philosophy. Some former employees claim that 12-hour workdays and weekend shifts are commonplace.

In addition, TSMC has had problems with labor unions.

To make things worse, the local government is having difficulty creating the legal ecosystem required to start a state-of-the-art semiconductor fab, according to sources consulted by DigiTimes Asia. Moreover, TSMC isn’t just setting up a single fab in Arizona but building three new semiconductor plants.

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It Makes Sense That TSMC’s Fab 21 Has Started Operations With an SoC for Apple

The government wants local companies to manufacture in the U.S. as much as possible. It also intends to produce 20% of the world’s advanced chips by 2030. In this regard, Apple confirmed two years ago that it will begin manufacturing its chips in the U.S. in 2024 to reduce its dependence on the Asian countries that dominate the semiconductor industry, especially China. This is precisely what the government is pursuing.

Currently, TSMC’s Fab 21 only produces the A16 Bionic SoC on its N4P node (4 nm) and in moderate quantities. It’s important not overlook that this plant is just starting semiconductor production. In addition, it won’t be ready to manufacture chips on a large scale until next year. However, as other more advanced nodes enter production, especially when the other two TSMC fabs close to Fab 21 are ready, more sophisticated SoC manufacturing for Apple will begin.

TSMC’s new Arizona facilities will produce semiconductors for Apple, Nvidia, AMD, and other U.S. companies. However, Fab 21 started by producing a chip for Apple because it’s TSMC’s largest customer. According to Statista, 26% of the Taiwanese semiconductor manufacturer’s revenue in 2021 came from Apple, which hasn’t changed much since then. Time will tell if TSMC’s Arizona facilities follow the planned roadmap. If so, it will be interesting to see the first semiconductors they produce for Nvidia and AMD.

Image | TSMC

More info | Tim Culpan

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