US Chip Supply Chain has a Gap as TSMC Arizona Sends Wafers to Taiwan for Wrapping
A news story from Taiwan has shown a big step in how the US makes chips, which now depends on places far away. TSMC's spot in Arizona makes full silicon wafers that are sent by air to Taiwan for the last steps, mainly to fill the big needs from the AI world.
The Why US Lacks Advanced Wrapping
The main problem is the US doesn't have enough local services to wrap top-level AI chips. The Arizona spot can't yet do the high-level wrapping, such as CoWoS (Chip-on-Wafer-on-Substrate), which firms like NVIDIA need. So, flying them to TSMC's set places in Taiwan is the quickest and easiest choice.
This need has caused a jump in demand for air delivery services. Eva Air of Taiwan talks about a big rise in demand, all thanks to what's going on at TSMC’s US spots. After a small dip, orders for AI servers are back up, and with TSMC's Taiwan spots full, some work has moved to the Arizona spot.
Cost Against the Huge AI Need
Though sending chip wafers over the sea adds more cost, neither TSMC nor its partners seem worried. The need in the AI chain, mainly for NVIDIA's AI servers, is huge, making the extra delivery cost a small worry next to filling orders.
The first plan to spend $165 billion by TSMC in the US had ideas for these high-end wrapping spots, but these have not yet happened.
Looking Ahead for US Chip Making
Despite this need to use Taiwan for the last steps, the US chip chain seems to be on a good path. Things show the US might meet over half its own chip needs by 2032. Also, TSMC plans to grow its US work to include even newer forms, like 1.6nm (A16), showing they want to keep making a stronger chip scene in the US.
