TSMC shifts focus to packaging

TSMC will open an advanced chip‑packaging plant in Arizona by 2029 and unveiled its A13 process at a Santa Clara technology symposium on April 22, 2026. (finance.yahoo.com) An executive told Reuters the Arizona plant is aimed at localizing advanced packaging for AI and high‑performance chips and is targeted to be online by 2029. (finance.yahoo.com) TSMC said its new A13 process is a direct shrink of A14, delivers about 6% area savings versus A14, and is scheduled for volume production in 2029. (businesswire.com) TSMC’s deputy co‑chief operating officer Kevin Zhang told reporters the company will not deploy ASML’s most advanced “high‑NA” EUV lithography machines through 2029 and that R&D can “harvest the benefit from current EUV.” (bloomberg.com, finance.yahoo.com) That choice shifts strategic emphasis to advanced packaging in the U.S., because modern AI accelerators squeeze performance by stitching multiple compute dies and memory stacks rather than relying only on wafer scaling. (finance.yahoo.com, tsmc.com) TSMC cited cost as a factor: ASML’s high‑NA systems cost roughly €350–€400 million each, and markets reacted — ASML’s stock moved after the announcements. (bloomberg.com, finance.yahoo.com) TSMC also previewed larger multi‑die packages, saying it expects by 2028 to stitch up to 10 large compute dies with 20 high‑bandwidth memory stacks on a single package. (finance.yahoo.com) Analysts noted two tradeoffs: Dan Hutcheson said packaging extends Moore’s law by moving to multi‑die packages, while rivals such as Intel are already adopting high‑NA EUV for nodes like 14A. (finance.yahoo.com, newsroom.intel.com) TSMC framed the moves as disciplined capital allocation and customer focus — CEO C.C. Wei said the company engineers nodes “to be ready for high‑volume production right when their visionary new designs demand them.” A13 is slated for 2029 and the Arizona packaging plant is targeted for the same year. (businesswire.com, finance.yahoo.com)