TSMC to invest $100bn into expansion in Arizona

Building on the company’s ongoing $65bn investment in its advanced semiconductor manufacturing operations in Phoenix, Arizona, TSMC’s total investment in the US is expected to reach $165bn.

As well as the R&D centre, the expansion includes plans for three new fabrication plants and two advanced packaging facilities.

TSMC’s expanded investment is expected to support 40,000 construction jobs over the next four years and create tens of thousands of jobs in advanced chip manufacturing and R&D. It is also expected to drive over $200bn of indirect economic output in Arizona and across the United States in the next decade.

TSMC's Arizona fab has been in volume production since late 2024 and currently employs over 3,000 people.

“Back in 2020…we embarked on our journey of establishing advanced chip manufacturing in the United States. This vision is now a reality," TSMC chairman and CEO Dr CC Wei said in a statement. “AI is reshaping our daily lives and semiconductor technology is the foundation for new capabilities and applications.”

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Speaking at a press conference to mark the announcement, US president Donald Trump said Taiwan has a monopoly over the semiconductor market and had previously suggested imposing tariffs of up to 100 per cent on imported chips.

“This is a tremendous move by the most powerful company in the world,” he said. “It’s a matter of economic security. It’s also a matter of national security for us.”

“They can come here because they can avoid paying tariffs,” added commerce secretary Howard Lutnick. “So, the idea is: Come to America. Build greatness in America. Build for the American customers - the Apple, Nvidia, that whole list that [TSMC] chairman Wei gave - in order to bring production to America.”  

In addition to its latest manufacturing site in Phoenix, TSMC operates a fab in Camas, Washington, and design service centres in Austin, Texas, and San Jose, California.