TSMC Speeds Up U.S. Fab; A16/N2 Chips Ahead of Schedule

In response to increasing pressure from the U.S. government to boost domestic semiconductor manufacturing, TSMC has advanced the construction timeline of its upcoming Arizona-based wafer fabrication facility by six months.

Globally, however, TSMC's expansion efforts are facing headwinds. Its existing facility in Japan has underperformed, and construction of a second fab in the country is reportedly delayed. In Europe, weakening demand in the German automotive sector may slow the company's future investments in the region.

Despite growing demand for semiconductors and increasing investment in the United States, Taiwan remains the strategic core of TSMC's global operations. Of the nine fabrication plants currently under construction, four are located in Taiwan. TSMC continues to lead in global chip manufacturing infrastructure development, consistently expanding its capacity year after year.

As of 2025, the company has nine facilities in various stages of construction—some of which began development in 2024, while others are entering operational phases. Among them, the Fab 21 complex near Phoenix, Arizona, is being counted as two distinct production sites. These will handle different process technologies, including N3, A16 (1.6nm), and N2 (2nm). The N3 line is currently being equipped with tools, while the newer nodes officially began construction in April 2025. The completion schedule for Fab 21 has been accelerated, with TSMC confirming a six-month advancement.

As part of its expanded U.S. roadmap, TSMC announced in early March an additional $100 billion investment, bringing its total U.S. commitment to $165 billion. These investments are expected to roll out in stages through the end of the decade. By 2030, the U.S. is anticipated to host advanced semiconductor production capabilities using the most cutting-edge process nodes.

While domestic production may offer long-term cost benefits for customers working with narrow margins—especially as next-gen nodes become more expensive—chips produced at the Arizona facility are still expected to carry a premium compared to those made in Taiwan. The exact price difference remains uncertain.