TSMC, the world’s largest semiconductor manufacturer, has announced an expansion of its operations in the United States, focusing on its Arizona plant.
Growing Demand for Advanced Chips
This decision responds to the rising demand for advanced chips driven by industries such as artificial intelligence, as well as U.S. government policies encouraging domestic production.
During its recent third-quarter earnings call, TSMC CEO C.C. Wei revealed plans to purchase a second piece of land near its existing Arizona facilities. This additional space will allow for the construction of new factories (fabs) and research and development centers aimed at introducing cutting-edge technologies such as 2-nanometer (N2) chips and, eventually, 1.6-nanometer (A16) chips. Production at the new facility is expected to begin in the second half of 2026.
Strengthening the U.S. Semiconductor Industry
Currently, TSMC’s facilities in Arizona are producing chips using the 4-nanometer (4 nm) process. This expansion will help meet the demand from major clients such as Nvidia, AMD, and Apple. The strategy also aims to reduce dependence on production in Taiwan and strengthen the semiconductor supply chain within the United States, avoiding high tariffs.
With this investment, TSMC positions itself as a key player in the U.S. technology industry, contributing to the development of critical technologies and creating new jobs in the region — one of the goals of the current administration. The expansion also reflects TSMC’s commitment to innovation and competitiveness in the global semiconductor market, which is vital for the continued advancement of next-generation GPUs and CPUs.
