TSMC's decision to establish a factory in Arizona, United States, has ignited intense discussions among Taiwanese citizens. However, recent reports suggest that the United States is facing yet another challenge. Arizona Governor Kathleen Marie Hobbs recently visited Taiwan and extended an invitation to TSMC to set up an advanced packaging plant in her state. However, insiders have revealed concerns about the low profitability of the packaging industry. They argue that while wafer foundries like TSMC are uncertain about when they will become profitable, investing in packaging plants would only result in significant financial losses.
The move by TSMC to set up a factory in the United States has generated discontent among American workers and has gained widespread attention in foreign media. The latest report from "Mirror Weekly" on the 27th unveiled Governor Hobbs' proposal for TSMC to establish advanced packaging plants locally. However, the low gross profit margin associated with this sector has caused anxiety among TSMC's top management. Currently, TSMC's focus lies on its 3-nanometer and 4-nanometer factories in the United States, where various issues remain unresolved. In light of these challenges, the forced establishment of packaging plants highlights the period of difficulties TSMC's global expansion is going through.
According to the report, Governor Hobbs led a delegation to Taiwan on the 18th of this month. In addition to participating in the "2023 U.S. Business Opportunity Day and Taiwan-U.S. Supply Chain Partnership Forum," she also visited TSMC Chairman Liu Deyin and President Wei Zhejia. During these meetings, she personally proposed the idea of TSMC setting up advanced packaging plants in Arizona. The rationale behind this suggestion stems primarily from foreign media reports indicating that although TSMC's Arizona plant plans to produce 3-nanometer and 4-nanometer wafers, they will still need to be shipped back to Taiwan for packaging.
The report from "Mirror Weekly" indicated that doubts have emerged within TSMC regarding the establishment of an advanced packaging plant in Arizona. Some believe that TSMC has not yet fully overcome the challenges associated with its 3-nanometer and 4-nanometer plants. Consequently, the decision to take on an additional burden has been met with skepticism. Another report also revealed the concerns of a senior executive from the semiconductor industry, questioning the viability of TSMC's decision. They pondered, "Having dealt with one predicament, what can they do next? After being deceived once, will they fall into the same trap again?" Furthermore, the packaging industry has not expanded its production capacity in the United States for a substantial period, primarily due to its low gross profit margin. Therefore, critics argue that this venture lacks sound business logic.
