TSMC To Build Additional Three Fabs, Two Advanced Packaging Facilities, And R&D Center In Arizona
Following a meeting at the White House today, President Trump and TSMC Chairman and CEO C.C. Wei announced a historic expansion of TSMC’s advanced semiconductor operations in Arizona. TSMC will invest at least an additional $100 billion to build three additional semiconductor fabs in Arizona as well as two advanced packaging facilities and a major R&D Center. The investment comes in addition to TSMC’s three fabs already in operation or under construction in Arizona and will represent thousands of additional new jobs.
TSMC announced its first fab in Arizona in May 2020. Since then, its presence has grown to three cutting-edge chip-making fabs and supporting facilities, representing a $65 billion investment and 6,000 jobs. Today’s announcement brings TSMC’s total announced investment in Arizona to $165 billion.
In January, TSMC announced it had begun producing advanced 4-nanometer chips for U.S. customers in Arizona, a first on American soil and a major milestone in the country’s efforts to reshore manufacturing of the most advanced microchips. Its second fab, which is under construction, is expected to produce the world’s most advanced 2nm process technology with next generation nanosheet transistors in addition to the previously announced 3nm technology. TSMC’s third fab will produce chips using 2nm or more advanced processes, with production beginning by the end of the decade.
“TSMC’s historic announcement cements Arizona as the epicenter of advanced chip manufacturing and innovation in America,” said Governor Katie Hobbs. “With the country’s most advanced chip-making processes, world class university partners, and a robust and growing talent pipeline, Arizona is powering the groundbreaking technologies of the future like AI. I’m grateful to President Trump, TSMC, and all our partners for making this historic day possible.”
“This is huge news for Arizona that officially cements our state as a global hub for building the most advanced microchips in the world and will put tens of thousands of Arizonans to work in good-paying jobs that do not require a 4-year degree,” said Arizona Senator and lead negotiator of the CHIPS and Science Act Mark Kelly. “Today’s announcement builds on years of bipartisan collaboration between Arizona’s federal, state, and local leaders and our economic development teams to make our state the best place in the country to build these one-of-a-kind facilities. By boosting domestic microchip development and production, we’re reducing reliance on foreign supply chains and making sure America leads the way in the industries of the future.”
“Earlier this month, my team met with representatives of TSMC to discuss their plans for future jobs in Arizona, which should focus on tapping into our veteran workforce,” stated U.S. Representative Abe Hamadeh, whose Congressional District serves as home to TSMC. “They are clearly committed to President Trump’s American First Manufacturing agenda, bringing high-paying employment opportunities to CD8 allowing US leaders to increase the quality of life for our residents.
“TSMC is doubling down on its investment with an expansion in Phoenix testament to the U.S. semiconductor industry growth that will deliver a major win for American workers,” said Mayor Kate Gallego. “This investment further strengthens domestic chip manufacturing, reduces reliance on foreign supply chains, and enhances national security. Billions in investment and thousands of high-tech, high-paying jobs illustrate how TSMC is a partner in cementing Phoenix as a global leader in semiconductor production. This expansion energizes innovation that fosters more economic growth, opportunities for skilled workers, and positions the Phoenix region at the forefront of advanced manufacturing.”
“Arizona is unrivaled in the advancement and scale of new chip investment taking place – with expansions across leading-edge manufacturing, advanced packaging, research and development, equipment, suppliers, workforce development and more,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We are immensely grateful to TSMC for their historic investment and steadfast commitment to Arizona and we thank President Trump, Governor Hobbs, Senator Kelly, and all our federal, state, university, and local partners for their continued collaboration.”
“Smart policy leads to big investment, and today’s announcement is the latest proof that Arizona is getting it right. Our pro-business approach has made us a national leader in advanced manufacturing, and TSMC’s expansion reinforces our position at the forefront of the semiconductor industry,” said Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry. “We appreciate President Trump’s focus on bringing manufacturing back to the U.S. and reshoring critical industries like semiconductors. These investments ensure that the most advanced chips in the world are made right here in the United States, strengthening our economy and national security.”
“Greater Phoenix has built a competitive semiconductor ecosystem amplified by TSMC’s initial investment, boasting world-class companies in research and development, packaging, chemicals, and other components of the supply chain,” said Chris Camacho, President and CEO of the Greater Phoenix Economic Council. “This additional commitment from TSMC reflects the strength of our region to catapult vital technologies and will further position Greater Phoenix as an internationally recognized leader of next-generation innovation.”
“Natcast congratulates the state of Arizona and NSTC member, TSMC, on its proposed $100 billion investment in U.S. chips manufacturing, packaging, and R&D,” said Deirdre Hanford, CEO, Natcast. “Arizona was selected as the anticipated location for the CHIPS for America NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility (PFF) based on its robust and growing ecosystem. Together we will drive U.S.-led innovation, expand a skilled workforce, and strengthen our economic and national security.”
In January, the U.S. Commerce Department and Natcast, the operator of the National Semiconductor Technology Center (NSTC), announced Arizona as the site of the co-located NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility, the third of three CHIPS for America research and development (R&D) flagship facilities. The facility will combine 300mm research and prototyping for front-end manufacturing and packaging capabilities, meeting a unique need for advanced packaging R&D within the U.S. semiconductor ecosystem.
About the Arizona Commerce Authority
The Arizona Commerce Authority (ACA) is the state’s leading economic development organization with a streamlined mission to grow and strengthen Arizona’s economy. The ACA uses a three-pronged approach to advance the overall economy: attract, expand, create – attract out-of-state companies to establish operations in Arizona; work with existing companies to expand their business in Arizona and beyond; and help entrepreneurs create new Arizona businesses in targeted industries. For more information, please visit azcommerce.com and follow the ACA on X @azcommerce.
Media Contacts:
Alyssa Tufts
Arizona Commerce Authority
alyssat@azcommerce.com
