Could TSMC be about to put down a wafer fab next to Globalfoundries' Fab 8 on the Luther Forest Technology Campus in Saratoga County, New York?
Evidence is starting to mount that foundry chip maker Taiwan Semiconductor Manufacturing Co. Ltd. could be about to follow Globalfoundries Inc. in building a wafer fab in up-state New York.
If negotiations play out it could be one of the first commercial-scale wafer fabs set down ready to manufacture on 450-mm diameter wafers whenever that transition should come. And it could be set down next door to Globalfoundries' Fab 8 in the Luther Forest Technology Campus in Saratoga County, one of the sites under consideration.
Reports have been circulating through November that a major semiconductor company has retained consulting firm Deloitte Touche Tohmatsu Ltd. to find a location for a 3.2 million square foot production facility.
Operating under the codename Project Azalea Deloitte has reportedly considered sites multiple sites in upstate New York as well as possibilities in California and Texas. The facility is expected to create about 1,000 jobs adding to the speculation that this is a multibillion dollar, leading-edge wafer fab, which restricts the list of possible companies. The location is expected to be selected before the end of 2012 and land negotiations concluded by the end of February 2013.
This has been put together with reports that U.S. congressman Bill Owens, representative for New York, visited TSMC in December 2011, which at the time prompted speculation that TSMC was considering building a wafer fab in the New York area.
Globalfoundries is already on the ground there; Intel already has multiple centers away from New York; Samsung has its U.S. manufacturing focus in Austin Texas, and so circumstantial evidence is starting to point to TSMC as the likely owner of Project Azalea.
And even though TSMC has always been a strong advocate of clustering its fabs together at campus sites in Taiwan, such a move would make sense because New York state has become a center of excellence for nanoelectronics, extreme ultraviolet lithography and is the global center for pioneering the technology around 450-mm diameter wafers. In additon, having a leading-edge manufacturing site in the United States would not hurt TSMC's efforts to take the manufacturing of processors for Apple away from rival Samsung.
As well as being the manufacturing location for IBM and Globalfoundries, New York hosts the College of Nanoscale Science and Engineering (CNSE) at the University of Albany. Perhaps more significantly the Global 450 Consortium (G450C) was established in 2011 at CNSE's Albany NanoTech Campus. G450C comprises the five leading chip companies with an interest in the next-generation wafer production; IBM, Intel, Globalfoundries, Samsung and TSMC.
There is a high degree of uncertainty about the introduction of 450-mm wafer production by TSMC or by any other semiconductor manufacturer with estimates varying from 2015 to 2018. That does, perhaps raise the possibility of consortium-owned 450-mm wafer fab being set down in New York, but in general the semiconductor industry finds it hard to work in this way in the competitive commercial world.
And it is interesting to note that in Chinese culture the Azalea is known as the "thinking-of-home" bush.
It's known that Apple ( and Qualcomm as well) attempted to convince TSMC to give them all of their production, but that TSMC refused. It's also known that Apple does deals with their manufacturers where they give them very large loans in the form of outright purchasing of machinery, financing for the building of manufactures, training of workers, etc.
I wouldn't be surprised if this move was inspired by Apple, and is even being partly financed by them. If any company can afford that, Apple can. It's said that a new 22nm plant can cost $8 billion. Even Intel is having problems coming up with that cash by themselves. But that's less than a quarter's cash flow for Apple.
This could be a very interesting development.
This is a little off topic, so let me say My family has more than 100 year history living in New York. We know New York economy is not good and are happy at the current efforts.
That said, not sure what metric is being looked at to say NY is better than California, but here is a good one...total state debt. California is horrible, 2x the #2 state, which not coincidentally is NY. So, yes, NY is better than California, but its still worse than all other states in the country. Check the link.
But unlike California, NY wants to spend their way out of debt by encouraging certain big business...like semiconductor. Bill Owens didn't visit TSMC to tell them that NY have a lot of talented workers, he visited to give Morris Chang a gift of land and tax breaks to build a fab.
Another reason to keep fab away from California is environment regulation, it's just harder to have a modern big fab in California, the air regulations just don't allow it. That's one of many resson why there aren't any modern fans in California.
What I'm interested in is opinion if there are any other logical candidate except TSMC for this site selection...I say not samsung, intel, global foundries, or UMC.
Yes -- especially compared to California. I don't think there is any way a company would consider a fab in Calif. right now.
The author doesn't mention it, but geographical diversity would help TSMC -- ensure stable production.
Because the cluster methodology will work out really well in the event of a large seismic event in Thailand... it is only a matter of time before TSMC's customers demand some protection from that type of disruption. Plus as you mention, many customers in the US may be pushing TSMC to do it and not just Apple, don't forget qualcomm.
I believe it is just rumor and will not be true because it conflicts TSMC's cluster manufacturing concept which has worked for a decade. If being true, it only would be Apple urged and co-worked with TSMC to build Fabs in the United States. Location would be near Wafer Tech in Washington State. NY, Texas are not good choice.