TSMC have said its fabs in Arizona will strengthen America’s leadership in critical technologies like AI, high-performance computing and advanced mobile applications. Credit: TSMC
TSMC’s Arizona expansion marks a major shift as the Apple supplier navigates helium shortages while posting an impressive 35% year-on-year revenue growth
Taiwan Semiconductor Manufacturing Company is accelerating the multibillion-dollar expansion of its Arizona semiconductor manufacturing site (fabs), signalling a significant reconfiguration of global semiconductor supply chains, according to CNBC.
TSMC has invested US$165 bn in its first three fabs in Arizona. Its first fab began production in 2025, with the second and third fab set to begin production by the second half of 2027 and the end of the decade, respectively. The company plans to expand that investment further, according to CNBC.
The Apple and Nvidia artificial intelligence (AI) chip supplier has recorded net revenue up 35.1% in the first quarter of 2026. TSMC recorded NT$1.134 bn (US$35.67 bn) for January to March 2026, up from NT$839 bn (US$26.39 bn) a year ago, marking a 35.1% increase in profits. This comes during disruptions in supply chains for helium in early 2026, which is needed for semiconductor manufacturing.
Arizona manufacturing expansion plans
While TSMC has begun work on its first three fabs in Arizona, TSMC's plans in Arizona include six semiconductor wafer fabs, two advanced packaging facilities and a research and development (R&D) team centre. The operation's first three fabs will result in 6,000 direct jobs and tens of thousands of jobs in construction and supply.
Speaking with CNBC, TSMC Chief Financial Officer Wendell Huang said: "We have strong conviction on the AI mega trend and that is the reason we are stepping up the capital expenditures to expand in Taiwan and in the US. Not just to expand, but also try to accelerate where it is possible to satisfy or narrow the gap."
CNBC reported in January 2026 that the company had purchased an additional 364-hectare lot in Arizona. Some facilities that were part of the original plan will now be built on this second piece of land instead, with the remainder "used for future flexibilities," Wendell said to CNBC. The expansion could represent a fundamental shift in semiconductor supply chain geography, moving production closer to major US customers and reducing dependence on Asian manufacturing hubs.
Helium supply chain challenges
The closure of the Strait of Hormuz has impacted the supply of helium needed for advanced semiconductor manufacturing. Forbes estimates that TSMC sourced 69% of its helium from the Gulf Cooperation Council in 2024. TSMC has said it is "monitoring the situation closely" and does not anticipate significant near-term production impacts, citing diversified contracts, robust on-site recycling (often 80-90% recovery rates at leading fabs) and existing inventories, according to reporting from Forbes.
Other semiconductor manufacturers, Samsung Electronics and SK Hynix, which supply roughly two-thirds of the world's memory chips, have four to six months' worth of helium inventory, a source told Reuters in early April 2026. The helium supply disruption highlights the vulnerability of semiconductor supply chains to geopolitical events and the critical importance of supply diversification and material recovery programmes.
Apple and Nvidia AI chip supplier, TSMC, has recorded net revenue up 35.1%. Credit: TSMC
Broader US manufacturing reshoring
TSMC has said its fabs in Arizona will strengthen America's leadership in critical technologies like AI, high-performance computing and advanced mobile applications. The effort is part of a broader move to reshore advanced manufacturing to the US, in line with US President Donald Trump's efforts to boost US manufacturing. Apple has committed to an investment in US manufacturing of over US$600 bn over the next four years.
Samsung Electronics' new US$17 bn semiconductor fabrication facility in Texas recently moved into the installation and commissioning phase. In March, Elon Musk, Chief Executive Officer of Tesla, announced two large fabs in Texas. When announcing the launch, he noted that the demand his company has for advanced semiconductors outweighs global supply.
Elon said: "To Samsung, TSMC, Micron and others. And we would like them to expand as quickly as they can. And we will buy all of their chips. I have said these exact words to them." The coordinated expansion of semiconductor manufacturing capacity in the US could signal a long-term restructuring of global chip supply chains, with implications for procurement strategies, lead times and supply chain resilience across multiple industries.