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TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab

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Flint 1760
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2021/10/23 08:51:15 (permalink)
wccftech - TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab
 
“TSMC plans to raise funds for its new chipmaking facility in the United States as chip manufacturers deal with a global shortage. TSMC is responsible for providing products to some of the world's largest companies, and the Taiwanese semiconductor foundry's latest chip manufacturing technologies have placed it at the forefront of the industry.
 
In addition to its Arizona subsidiary announcing a debt offering for the U.S. chip facility, TSMC also battled a fire in Taiwan at the site where its chipmaking facility is located for the leading-edge 5-nanometer (nm) chip process. The fire started at an under-construction water processing facility and has been controlled since then.
 
TSMC's Arizona plant is overseen by the company's subsidiary registered in the state. The subsidiary, TSMC Arizona, filed a prospectus with the Securities and Exchange Commission (SEC) earlier this week, in which it outlined its plans to sell debt worth $4.5 billion. While the prospectus, which is a document that informs potential investors about the nature of the company soliciting investment and the use of the funds generated, does not explicitly mention constructing a semiconductor fabrication plant, it is highly likely that the funds will be used for purposes associated with this.
 
According to TSMC Arizona: ‘TSMC Arizona Corporation, a corporation incorporated under the laws of the State of Arizona, U.S.A. in November 2020, or the Issuer, is a wholly-owned subsidiary of TSMC Limited. TSMC Arizona is expected to be primarily engaged in the manufacture and sale of integrated circuits. TSMC Arizona plans to spend approximately US$12 billion from 2021 to 2029 to build and operate an advanced semiconductor manufacturing facility, Fab 21, in the City of Phoenix area. Construction of the fab commenced in April 2021 and equipment is expected to be moved into the fab during the second half of 2022. TSMC Arizona targets to commence commercial production in 2024.’
 
As its Arizona subsidiary was busy raising funds for the new plant, back in Taiwan, a water plant being built for TSMC in the same locality as its 5nm chip fab caught fire. The fire led to two workers from the scene being rescued, and an early investigation by the local fire department speculated that foam in the plant area caught fire from sparks generated through electrical welding.
 
After reports of an across-the-board price increase in the chipmaking sector earlier this year, fresh rumors from Taiwan bear news of more hikes. According to news outlet Jiwei, TSMC might further increase prices from the start of next year, as another Taiwanese chipmaker UMC, has reportedly notified its customers of a sub-10% hike from January.
 
Responding to requests from the United States Department of Commerce to share supply chain data, TSMC announced yesterday that it would submit this data by the 8th of next month. TSMC's statement reads as: ‘Looking forward, to increase the demand visibility in this complex supply chain should be the path to avoid such shortage from happening in the future. We have been a strong partner in this effort and will continue taking actions to address this challenge.’ "
 
My thoughts:  It appears that the new Arizona plant will begin production in 2024, and prices for chips are going up in January 2022. 
 
I’m not really surprised that TSMC is cooperating with the USDOC about the supply chain data since TSMC is building in the US.


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    rjohnson11
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/23 10:25:42 (permalink)
    Sadly this is a long term solution and won't help customers in the short term. 

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    Flint 1760
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/23 11:14:44 (permalink)
    No, we are stuck with the present situation for another year or so.  At least we can keep our sense of humor.


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    Grey_Beard
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/23 11:15:14 (permalink)
    Unfortunately, this industry is not one that can make quick moves. We may look back at this time as the golden age. With price increases, massive investments and a future that may not live up to the projections. The next 5 years will be ones to watch.



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    Flint 1760
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/23 11:38:23 (permalink)
    Grey_Beard
    Unfortunately, this industry is not one that can make quick moves. We may look back at this time as the golden age. With price increases, massive investments and a future that may not live up to the projections. The next 5 years will be ones to watch.



    You are right and with the cost and lead time for chip fabs, it is going to take time, effort, and monetary resources.  That doesn't include all the ancillary industries that are necessary.  Unfortunately, there are also possible geopolitical situations which may disrupt everything again.
     
    There have been several posts over the last few months lamenting the cost of GPUs and hoping that pricing will return to "normal."  Well, this is the new normal and pricing will unfortunately keep increasing.


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    nomoss
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/23 11:48:28 (permalink)
    Yeah, there's no way Nvidia ever releases a xx80 series again under $700
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    Grey_Beard
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/23 11:57:48 (permalink)
    Flint 1760
    Grey_Beard
    Unfortunately, this industry is not one that can make quick moves. We may look back at this time as the golden age. With price increases, massive investments and a future that may not live up to the projections. The next 5 years will be ones to watch.



    You are right and with the cost and lead time for chip fabs, it is going to take time, effort, and monetary resources.  That doesn't include all the ancillary industries that are necessary.  Unfortunately, there are also possible geopolitical situations which may disrupt everything again.
     
    There have been several posts over the last few months lamenting the cost of GPUs and hoping that pricing will return to "normal."  Well, this is the new normal and pricing will unfortunately keep increasing.


    Totally agree. Just wait until China takes these fabs in Taiwan. If we think the market is bad now. The ships tied up are another thing impacting this. That will also not last forever.

    In Capitalism, prices never retreat unless in desperation to gain back market share. There will never be a value release like the 1080Ti. I am glad I have 6 of those. They are still a solid card this many years later. This pricing scheme though will lead to market repositioning. Intel is the only one with deep enough pockets to release reasonably priced cards. I think they will gain massive market share if they price them appropriately.

    Greed destroys. It may feel good now, but the price in the end is brutal.



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    GTXJackBauer
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/24 02:59:37 (permalink)
    They all waited last minute to do things when there were clear signs and no backup plan and not only that, this is the best excuse to bump the prices.  The only thing some of these companies and other public entities on all levels are good at is manufacturing inflation and now hyperinflation is being rumored to look out for. 
     
    We're not out of the woods yet.

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    rjohnson11
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/24 03:26:46 (permalink)
    2022 is going to be a long year....waiting for video cards

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    Flint 1760
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    Re: TSMC: Fire Near 5nm Site, Rumored Price Hike, & $4.5 Billion Debt for U.S. Fab 2021/10/24 04:19:56 (permalink)
    Talking GPUs in 2022, I really don't think that much is going to change initially.  Yes, Intel will release their GPUs, but they are also supply constrained.  It will help, hopefully in availability and pricing.  Toward the end of next year, we might see a marked improvement and NIVIDIA and AMD are rumored to have new releases.  Whether or not they'll have much stock is unknown.
     
    If the geopolitical situation goes the wrong way, you can forget about a new GPU for years.  We'll have more pressing concerns to address.


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