TSMC Accelerates US Chip Plant Construction Amid Robust Demand

Taiwan Semiconductor Manufacturing Co. (TSMC) is accelerating the construction of its second and third plants in Arizona to meet growing demand for smartphone and AI computing chips from US-based customers. The company is investing an additional $100 billion to build five more facilities, including two chip packaging plants and advanced chip production of 2-nanometers or better. Construction is now expected to be completed several quarters earlier than initially planned.

Taiwan Semiconductor Manufacturing Co. (TSMC) has announced plans to speed up the construction of its second and third plants in Arizona, aiming to meet the surging demand for smartphone and AI computing chips from U.S.-based customers. The world's largest contract chipmaker has committed to an additional $100 billion investment to build five more facilities in the state, including two chip packaging plants and advanced chip production at the 2-nanometer (nm) scale or better [1].

The acceleration in construction is part of TSMC's broader strategy to expand its manufacturing footprint in the United States. The company's CEO has promised a record-breaking year in both revenue and profits, citing strong demand for AI applications [1]. The first plant in Arizona, which makes 4-nm chips for major clients such as Apple and NVIDIA, has already begun operations. The second plant, for 3-nm chips, is also underway, while the third plant, initially planned to start producing 2-nm chips by the end of the decade, is now expected to be completed much faster, potentially by the end of 2026 [2].

TSMC's supply chain partners, which include companies for pipes, electric gear, and other essential components, already have U.S. licenses, facilitating the faster construction pace. This strategic move positions TSMC to capture a significant share of the growing market for advanced semiconductor chips, which are crucial for AI and other high-performance applications.

Meanwhile, TSMC's main rival, Samsung, is also working on its 2-nm technology but faces challenges in catching up. Samsung's current 2-nm results are around 30 percent, with a target of reaching 60-70 percent by the end of the year. The company has plans to release a third-generation 2-nm node, SF2P+, in two years, depending on customer orders [2].

As TSMC ramps up its production capacity in Arizona, it is well-positioned to capitalize on the increasing demand for advanced semiconductor chips, setting the stage for continued growth and profitability.

References:
[1] https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-to-speed-up-construction-of-US-chip-plants-by-several-quarters
[2] https://www.technetbooks.com/2025/07/tsmc-2nm-arizona-factory-moves-fast.html