TSMC, the world's leading independent semiconductor foundry, has encountered a problem affecting a factory named 18A, which manufactures chips based on the company's most advanced technology. The power plant located in Nan-ke city in Taiwan (TQ) has suffered a power outage of up to 90%.
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According to United Daily News, the outage could force TSMC to temporarily stop producing wafer sheets using its most advanced process buttons in the 4nm and 5nm wave steps. The lower the processing button, the higher the number of semiconductor balls that can be installed in the chip. Moreover, the higher the number of semiconductor bulbs in the chip, the stronger and more energy-efficient the chip is. If the power is completely cut off and not supplied again, the processing of the wafer sheets may be stopped and valuable wafer sheets will have to be thrown away, causing millions of USD in damage.
When manufacturing chips, this process requires complex tasks to be handled one by one and without delay. The decline in voltage may make this impossible without the fab's backup system taking over as soon as the decline in voltage is detected.
TSMC and Taiwan (TQ) discussed with each other about the foundry's demand for continuous power sources, causing Taiwan to choose between providing more electricity to TSMC and other companies or creating more electricity for consumers.
The 18A manufacturing facility witnessed a decrease in voltage earlier today, responsible for producing semiconductors on TSMC's most advanced process. These are process buttons 4nm and 5nm, and only a handful of companies in the world use these chips, such as Apple, a consumer electronics giant in Cupertino, California.
Last week, Samsung defeated TSMC and started exporting 3nm chips (to cryptocurrency miners). By the end of this year, TSMC will also start providing integrated 3nm chips and they have begun planning for facilities in Tan Truc, Taiwan, where the 2nm chipset will be produced starting in 2026. The facility will use billions of kilowatts of electricity hours a year, some of which will be generated from wind power.
