TSMC expands 3nm in US
TSMC is scaling 3‑nanometre capacity across Taiwan, the U.S. and Japan and has entered 2nm mass production while planning larger U.S. investments, with Arizona singled out for new capacity. Reuters reports the expansion as part of broad capital spending and a market note says wafers made in Arizona are being quoted at roughly a 25–30% premium versus Taiwan production (reuters.com) (markets.financialcontent.com).
Taiwan Semiconductor Manufacturing is pushing its most advanced 3-nanometer chipmaking into Arizona as it expands capacity across Taiwan, the United States and Japan. (channelnewsasia.com) Three nanometers is a manufacturing generation for the tiny circuits inside chips used in artificial intelligence servers and high-performance computing systems. Analysts told Reuters demand for TSMC’s 3-nanometer production and its advanced packaging is still running ahead of available capacity. (channelnewsasia.com) TSMC’s Arizona site already started high-volume production of 4-nanometer chips in the fourth quarter of 2024. Its second Arizona fab is targeting volume production on 3-nanometer technology in the second half of 2027, and the third fab is slated for 2-nanometer and A16 process technologies by the end of the decade. (tsmc.com) The company said on March 4, 2025 that it planned to add $100 billion to its United States investment, bringing the Arizona total to $165 billion. TSMC said that expansion would add three new fabrication plants, two advanced packaging facilities and a research and development center in Phoenix. (tsmc.com) TSMC is making the push while artificial intelligence spending keeps lifting its financial targets. At its January outlook, the company set 2026 capital spending at $52 billion to $56 billion, and Reuters said investors were watching on April 16 for whether management would keep or raise that range. (channelnewsasia.com) On April 16, TSMC’s investor site showed first-quarter 2026 revenue of $35.90 billion and second-quarter guidance of $39.0 billion to $40.2 billion. The same results page showed a first-quarter gross margin of 66.2 percent. (tsmc.com) The expansion is no longer limited to Taiwan and Arizona. Reuters reported on February 5 that TSMC now plans to make 3-nanometer chips at its second fab in Kumamoto, Japan, replacing an earlier focus on less advanced 6-nanometer to 12-nanometer production. (usnews.com) TSMC has also already moved to the next step after 3 nanometers. Its technology page says 2-nanometer, or N2, started volume production in the fourth quarter of 2025, using a new nanosheet transistor design, while N2P is scheduled for volume production in the second half of 2026. (tsmc.com) Building that capacity in Arizona is coming at a higher price than building it in Taiwan. A market note published April 15 said wafers from the Arizona complex were being quoted at a 25 percent to 30 percent premium to equivalent Taiwan production, reflecting higher labor, materials and regulatory costs in the United States. (markets.financialcontent.com) TSMC says the Arizona project is meant to lock more advanced chipmaking inside the United States supply chain, and customers appear willing to pay for that redundancy. The next test is whether the company can keep adding 3-nanometer and 2-nanometer output fast enough to catch demand from artificial intelligence customers without squeezing margins. (tsmc.com)
