TSMC to invest $100 billion in new Arizona fabs

TSMC to invest $100 billion in new Arizona fabs

By Amy Edelen

Taiwan Semiconductor Manufacturing Co. will invest as much as $100 billion to build three more computer chip factories, two advanced packaging centers and a research and development center that will create thousands of jobs in Arizona, the White House announced Monday.

President Donald Trump and TSMC CEO C.C. Wei unveiled the company’s investment to spur domestic production of AI chips, building upon the company’s previously announced $65 billion investment in its north Phoenix fab site.

TSMC’s expanded investment is expected to support 40,000 construction jobs over the next four years and create tens of thousands of high-paying, permanent high-tech jobs in advanced chip manufacturing and R&D. The expansion is also expected to generate more than $200 billion in indirect economic output in Arizona and the U.S. within a decade, according to the company.

“This will create hundreds of billions of dollars in economic activity and boost America's dominance in artificial intelligence and beyond,” Trump said. “Semiconductors are the backbone of the 21st century economy, and really, without the semiconductors, there is no economy powering everything from AI to automobiles to advanced manufacturing. And we must be able to build the chips and semiconductors that we need right here in American factories with American skill and American labor. And that's exactly what we're doing.”

TSMC, the world’s biggest semiconductor manufacturer, produces chips for companies including Apple, Intel and Nvidia. The company began mass production of 4- nanometer chips for Apple — its largest customer — in January. Last September, the Business Journal reported that TSMC’s Arizona factory, or fab, reached a trial production yield rate similar to the company's yield rate at its Fab 18 in Tainan, Taiwan, which had put the fab ahead of schedule.

“In Phoenix, Arizona with 3,000 employees, we are producing the most advanced chips made on U.S. soil,” Wei said during the press conference. “With the success of our first fab, we are now very happy to announce we are going to invest additional $100 billion U.S. dollars in addition to our current $65 billion U.S. dollar investment in Arizona … we are going to produce many chips to support AI progress and support smartphone progress.”

 TSMC did not provide specific job creation numbers nor a fab construction timeline as part of its planned $100 billion investment in Arizona.

TSMC’s expansion plays a crucial role in strengthening the country’s semiconductor ecosystem and completes the domestic AI supply chain with the company's first U.S. advanced packaging investments.

"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,” Sen. Mark Kelly, a key negotiator for the CHIPS and Science Act, said in a statement.

TSMC’s new fabs, combined with investments made by other companies, could elevate the U.S. to 40% of the global chipmaking market, Trump said.

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

TSMC expects second Arizona factory to open in 2028

As the Business Journal reported in December, TSMC (NYSE: TSM) is on track to begin mass production at its Arizona fab site in Q1 of this year. Operations are expected to begin at TSMC's second Phoenix factory in 2028. The company’s second fab will produce 2- and 3-nanometer process technologies for AMD, Apple, Nvidia and Qualcomm.

Last November, the White House finalized its award of a $6.6 billion CHIPS Act grant to TSMC with plans to disburse $1 billion to the chipmaker by the end of 2024 to support its Arizona fab site.

TSMC’s investment comes just a week after Apple announced a $500 billion investment in the U.S., including plans to double the size of its the size of its U.S. Advanced Manufacturing Fund from $5 billion to $10 billion, which "includes a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC's Fab 21 facility in Arizona."

Phoenix Mayor Kate Gallego released a statement on the TSMC expansion, saying it positions the Phoenix region at the forefront of advanced manufacturing.

“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,” Gallego said in a statement. “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."

Sandra Watson, president and CEO of the Arizona Commerce Authority, expressed gratitude for TSMC’s investment and continued collaboration with federal, state and academic leaders to boost the state’s semiconductor ecosystem. 

 “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,” Watson said in a statement.

Final Thoughts:

Arizona is rapidly transforming into a high-tech powerhouse, and TSMC’s $100 billion investment is proof. This isn’t just about chips—it’s about jobs, innovation, and a booming economy that’s attracting professionals from all over the country. If you're relocating to Phoenix, you’ll be stepping into a city on the rise, with cutting-edge career opportunities and a thriving housing market. The demand for top talent in AI, semiconductors, and engineering is surging—making this the perfect time to move where the future is being built.