Taiwan Semiconductor Manufacturing Company (TSMC) has embarked on a significant expansion in the United States, particularly in Arizona, to strengthen its advanced semiconductor manufacturing capabilities and establish a strategic presence in the U.S. technology sector.
TSMC has announced a total investment of US$165 billion in the United States, a significant portion of which is earmarked for the construction of six fabs in Phoenix, Arizona. The first fab will begin production of 4-nanometre (nm) chips in late 2024, marking a major milestone in advanced semiconductor manufacturing on American soil. The second fab, scheduled for 2028, will be dedicated to the production of 2nm chips using TSMC’s ‘A16’ technology. The recently announced third fab will be designed to produce 2nm chips or even more advanced technologies and is expected to begin production by the end of the decade.
In addition to manufacturing, TSMC is investing in the establishment of a research and development (R&D) centre in Arizona. This centre will leverage local talent and collaborate with academic institutions and industry partners to advance semiconductor research. The goal is to develop cutting-edge technologies such as the A14 process planned for 2028, which promises a 15% increase in processing speed or a 30% reduction in power consumption compared to N2 chips.
Strategic Impact TSMC’s presence in Arizona represents a significant step towards reducing the United States’ dependence on foreign semiconductor supplies, particularly from Taiwan. With a goal of producing 20% of the world’s most advanced logic chips by 2030, the United States is seeking to strengthen its position in the semiconductor industry. TSMC expects that 30% of its most advanced chip production will be in Arizona once all six plants are operational.
TSMC’s expansion in Arizona not only increases advanced semiconductor manufacturing capacity in the United States, but also represents a strategic investment in research and technology development that will help strengthen the United States’ position in the global semiconductor landscape.