TSMC expands in Arizona

TSMC has started building a third chip plant in north Phoenix as it pushes its Arizona project into a much larger U.S. manufacturing hub. (tsmc.com) The company said in March 2025 that it would add $100 billion to its existing $65 billion Arizona commitment, lifting its total planned U.S. investment to $165 billion. That expansion covers three more fabrication plants, two advanced-packaging facilities, and a research-and-development center. (tsmc.com) TSMC’s Arizona site now lists six planned wafer fabs and two advanced-packaging facilities, and the company says the third fab broke ground in April 2025. The third plant is slated to make N2 and A16 chips, with volume production targeted by the end of the decade. (tsmc.com) A fab is the factory where silicon wafers are turned into chips, while advanced packaging is the step that connects finished chips together so they can work as one system. TSMC said it is applying for permits to start construction on a fourth Arizona fab and its first Arizona packaging plant. (investor.tsmc.com) The Arizona buildout comes as artificial-intelligence demand keeps lifting TSMC’s sales. The company reported first-quarter 2026 revenue of NT$1.134 trillion, up 35.1% from a year earlier, and guided second-quarter revenue to $39 billion to $40.2 billion. (tsmc.com) (investor.tsmc.com) TSMC began producing 4-nanometer chips at its first Arizona fab in the fourth quarter of 2024, according to company statements cited by Arizona business groups. The second Arizona fab has completed construction and is set for volume production in the second half of 2027, according to TSMC’s Arizona site and Arizona Republic reporting published April 17, 2026. (inbusinessphx.com) (tsmc.com) (azcentral.com) The project has grown far beyond TSMC’s first Arizona announcement in May 2020, when the company said it would spend $12 billion on one fab. By December 2022, TSMC had raised that to $40 billion for a second fab, and by 2025 the plan had expanded into a multi-fab campus. (tsmc.com 1) (tsmc.com 2) Arizona officials have framed the site as a long-term semiconductor cluster rather than a single factory. Greater Phoenix Economic Council said the March 2025 expansion announcement followed a White House meeting with TSMC Chairman and Chief Executive C.C. Wei and President Donald Trump. (gpec.org) The next marker is not another announcement but concrete permits, equipment moves, and production dates. TSMC’s Arizona page now describes the campus as a six-fab, two-packaging-facility project with an R&D center still to come. (tsmc.com)