Taiwan Semiconductor Manufacturing Company (TSMC) has commenced construction on its third semiconductor fabrication facility in Phoenix, Arizona in the US.
The development was highlighted by a visit from US Secretary of Commerce Howard Lutnick, who toured the site as part of the Trump Administration’s broader push to strengthen domestic manufacturing.
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The development follows the company’s announcement in March 2025 of an additional $100bn investment to support the development of five new advanced fabrication plants in the country. This brings TSMC’s total US investment to $165bn.
The US government has supported the company’s Arizona projects with billions in subsidies under the CHIPS and Science Act.
In April 2024, TSMC confirmed ongoing construction of its first and second fabs.
Over the next decade, the project’s overall economic impact is projected to exceed $200bn in Arizona, the company said.
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By GlobalDataTSMC Arizona’s first fab is scheduled to begin production using 4nm technology in the first half of 2025.
The second facility will focus on advanced 2nm technology and next-generation nanosheet transistors, with production expected in 2028.
Planned to commence production by the end of this decade, the third fab will manufacture chips using 2nm or more advanced processes.
All three fabs will feature cleanroom areas roughly twice the size of a typical logic fab.
TSMC chairman and CEO Dr C C Wei said: “We were delighted to welcome US Secretary of Commerce Howard Lutnick to TSMC Arizona, the largest single foreign direct investment in U.S. history, and showcase the progress of our operation as he commemorates the first 100 days of the White House administration.
“As part of our commitment to support the needs of America’s leading innovators in smartphones, HPC and AI, we recently broke ground on our third fab, which will introduce more advanced semiconductor capacity to the United States.”
In 2024 a non-binding preliminary agreement was signed with the US Department of Commerce that outlines potential direct funding of up to $6.6bn to support the company’s activities in the region.
