TAIPEI (Taiwan News) — Trial production at Taiwan Semiconductor Manufacturing Company’s (TSMC) Arizona facility has shown production yields matching those of the firm's fabs in Taiwan.

On Friday (Sept. 6) Bloomberg cited a source, who spoke on the condition of anonymity, as saying the yield rate in trial production at the US fab is “similar to comparable facilities in the southern Taiwanese city of Tainan.” In response, TSMC said via email that the fab was “proceeding as planned with good progression” but did not comment on the trial production yield rate.

According to TSMC's earlier statements, the Arizona plant began trial production using the advanced 4-nanometer process technology in April this year. Since the current production volume is comparable to that of the Tainan plant, TSMC is expected to maintain a long-term gross profit margin target of over 53%, a figure that has not dropped below 36% in the past four years.

TSMC faces risks in setting up a plant in the US, with plans to invest US$65 billion in Arizona to build three factories. This will not only be the largest foreign direct investment in Arizona's history but also the largest foreign direct investment in a greenfield project in US history, according to TSMC.

TSMC plans to establish three wafer fabs in Arizona, with each cleanroom twice the size of a typical logic wafer fab in the industry. The first fab is expected to begin mass production in the first half of 2025, per NOWNews.

The second fab in Arizona will use 2-nanometer process technology to support strong AI-related demand, with production expected to begin in 2028. The third fab will use 2-nanometer or more advanced process technology, with production to start between 2029 and 2030.