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TSMC SVP, Deputy Co-COO & Chief Information Security Officer, Dr Cliff Hou. Credit: DIGITIMES
Taiwan remained the largest foreign delegation at the US Department of Commerce's SelectUSA Investment Summit for a third straight year, with TSMC indicating it may further expand its US investment footprint amid rising demand for advanced semiconductor manufacturing and AI infrastructure.
Asked during the event whether TSMC(2330.TW) would continue investing in the US, Dr. Cliff Hou, TSMC senior vice president and deputy co-COO, said there were "many different possibilities," adding that the company was prepared to capture new business opportunities and future growth.
US Commerce Secretary Howard Lutnick said at the summit that companies were sharply increasing investments in the US, particularly in AI infrastructure and semiconductors. He noted that TSMC and Micron Technology alone had committed hundreds of billions of dollars to manufacturing projects, while partners from Taiwan, Japan, and South Korea had pledged to manufacture in the US.
Lutnick said the US government was no longer focused on bringing back only scattered manufacturing projects, but aimed to drive a broader industrial revival through infrastructure rebuilding, energy investment, and large-scale semiconductor production. He said the US was expected to attract trillions of dollars in investment commitments, including hundreds of billions of dollars in energy infrastructure and more than US$1 trillion tied to semiconductor-related infrastructure, excluding data center investment.
Under Secretary of Commerce for International Trade William Kimmitt also praised Taiwanese companies during the summit, saying they "not only know how to manufacture, but also how to execute and deliver results."
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TSMC doubles global expansion pace
Speaking at a recent US technology forum, Hou outlined TSMC's latest US expansion roadmap.He said the company would carry out nine phases of construction projects in 2025 and maintain the same pace in 2026 as it continues expanding capacity. Compared with an average of four phases annually in previous years, TSMC is now expanding capacity at roughly twice its historical pace, both in Taiwan and overseas.
At the Arizona site, the first fab has already entered mass production using the N4 (4nm) process to support local customers. Construction of the second fab has been completed, with equipment installation scheduled to begin in the second half of 2026. The facility will target 3nm production and is expected to begin mass production in the second half of 2027.
Construction of the third fab, targeting 2nm production, is already underway. TSMC also plans to begin construction of a fourth fab and its first advanced packaging facility in Arizona in 2026.
To support future growth, TSMC has secured an additional site across from its existing Arizona campus to accommodate expected expansion from US customers.
The company's first Arizona N4 fab has already achieved yields comparable to its Taiwan operations when producing the same products, according to TSMC. The company plans to further raise output and expand capacity, with N4 capacity expected to increase 1.8 times in 2026.
Industry sources said TSMC has also internally confirmed plans for at least five to six additional facilities beyond the current roadmap of six fabs and two advanced packaging plants.
The first advanced packaging facility is expected to begin construction in the second half of this year and enter operation in 2028. The plant is tentatively planned for SoIC and CoW technologies, while a second advanced packaging facility, AP2, will be launched depending on customer demand.
Supply chain sources said strong demand from US customers, continued reports of competition from Intel and Samsung Electronics for advanced chip orders, and efforts by companies including Apple, Google, and AMD to diversify foundry sourcing beyond TSMC were all likely to accelerate the company's US expansion.
Sources added that Elon Musk's Terafab initiative and growing concerns over electricity supply were also contributing factors, making further upward revisions to TSMC's US investment increasingly expected by the market.
Article translated by Levi Li and edited by Jack Wu
https://www.digitimes.com/news/a20260506PD230/tsmc-arizona-expansion-investment.html