TSMC's U.S. 3nm Fab Set for Early 2027 Production

According to Nikkei Asia, sources familiar with the matter say TSMC is accelerating the ramp-up of its second wafer fab at Fab 21 in Arizona, moving its mass production timeline forward by several quarters.

TSMC is now expected to begin relocating production equipment to the second Arizona fab in the third quarter of 2026. Installation of the main production lines is projected to be completed in the first half of 2027, which could allow volume manufacturing to start before the end of 2027—earlier than the previously expected 2028 timeframe.

TSMC has indicated that core construction for the second fab has already been completed this year. With the building structure and mechanical, electrical, and plumbing systems in place, the next phase focuses on installing internal infrastructure such as elevators and HVAC systems. Once these steps are finished, the facility will undergo environmental qualification. If parameters such as temperature, pressure, and humidity remain stable, the site will move into full-scale tool installation.

The installation and calibration timeline varies by equipment type, ranging from several hours to multiple days. Advanced DUV and EUV lithography tools typically require significantly more time than other systems on the production floor. Even so, bringing up the first wave of tools, synchronizing them, and starting initial pilot runs usually takes several months.

Despite these challenges, TSMC is still positioned to begin limited-volume mass production using its 3nm (N3) process at the second Arizona fab by late 2027.

Looking further ahead, TSMC started construction of a third Arizona fab in April 2025, designed to support 2nm (N2) and 1.6nm (A16) manufacturing. The company aims to complete this facility as quickly as possible to enable earlier U.S.-based production of its next-generation process technologies.

During an earnings call in October, TSMC CEO C.C. Wei highlighted strong collaboration with key U.S. customers and federal, state, and local governments as a major driver behind the accelerated expansion. He also noted that surging AI-related demand is pushing TSMC to move faster toward N2 and more advanced nodes, reinforcing Arizona's role in the company's long-term manufacturing roadmap.