TSMC to Boost Arizona Investment for 3nm/2nm Chips

According to reports, TSMC plans to increase its investment in its Arizona facility to promote the concept of "Made in America" and expand its production capabilities.

The semiconductor giant appears to be showing greater interest in its overseas operations, particularly in the United States, as optimism in the U.S. semiconductor sector surged following the Trump administration's tenure. Companies like TSMC have begun adjusting their strategies accordingly. Reports indicate that TSMC is preparing to scale up its Arizona plant operations to accommodate advanced manufacturing processes, including the 2nm node.

The company is said to be enhancing production capacity across three existing wafer fabs in Arizona, potentially boosting output. Industry insiders estimate that TSMC's monthly production capacity for 2nm wafers could reach 170,000 units, with 140,000 units produced in Taiwan and 30,000 units in the U.S. The Arizona facility is expected to contribute around 17% of TSMC's total 2nm output—a remarkable figure considering the plant began operations just a few months ago.

Production timelines reportedly show that the Arizona site will commence mass production of 4nm chips in 2025, with 3nm production slated for Q3 of 2027, and advanced nodes like 2nm or A16 (1.6nm) chips projected to begin after 2027.

Following the Trump administration's push for domestic semiconductor production, TSMC has prioritized the accelerated development of its Arizona facility to meet growing demands. Additionally, with the possibility of tariffs on imports from Taiwan, the company may increasingly rely on its U.S. production lines. However, industry experts caution that unless the U.S. government provides subsidies to foster sustainable local manufacturing, the operational costs of the Arizona plant could remain prohibitively high. As a result, TSMC's expansion strategy in the U.S. appears to be driven more by strategic planning considerations than sheer necessity.