TSMC Has Begun Production of Advanced 4-nanometer Chips in the US and Expects to Report Q4 2024 Results This Week
Go Wire
January 13, 2025
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TSMC $TSM, a major supplier of Apple $AAPL and Nvidia $NVDA, has started manufacturing advanced 4-nanometer chips at its Arizona plant, marking a new chapter in US semiconductor manufacturing.
On Friday (Jan. 10), US Commerce Secretary Gina Raimondo said TSMC has been producing 4-nanometer chips in Arizona for US customers in recent weeks. Raimondo said this was the first time Americans have made a leading 4-nanometer chip in the United States.
In November 2024, the US Department of Commerce allocated $6.6 billion for TSMC's semiconductor production in Arizona. In April 2025, TSMC consented to increase its investment to $65 billion and to add a third plant in Arizona by 2030.
Raimondo emphasized that the department needed to persuade TSMC to accelerate its US expansion.
TSMC expects the second plant to produce state-of-the-art 2-nanometer chips in 2028 and agreed to use state-of-the-art “A16 chip” manufacturing technology in Arizona. Raimondo hopes that by 2030, the US will produce 20% of the world's advanced logic chips, whereas in the past, US advanced chip production has been almost zero.
On Friday, TSMC also announced its December 2024 monthly revenue report. TSMC's revenue in December 2024 amounted to $8.44 billion, up 57.8% YoY. The overall revenue for the fourth quarter of 2024 is expected to be approximately $26.36 billion, exceeding the forecasts of about $25.9 billion.
Its strong performance has reinforced expectations that tech giants will rapidly build and elevate data centers to promote AI. TSMC is one of the biggest beneficiaries of global AI development.
However, TSMC has both opportunities and challenges. Issues such as overbuilding and power shortages may be bottlenecks for AI development. The lack of AI applications could lead to unused server capacity. Moreover, TSMC faces uncertainty in the global tech market and geopolitics.
Morgan Stanley expected TSMC's first-quarter revenue to decline 5% due to sluggish iPhone sales and its full-year revenue to grow by less than 20%. Morgan Stanley added that TSMC usually gave conservative earnings guidance.
TSMC is set to report full fourth-quarter earnings on Jan. 16 with updates on its outlook for the quarter and full year.
As of the US stock market close on Jan. 10, TSMC closed up 0.60%.
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