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Facing chip tariff uncertainties, TSMC offered more clarity on its U.S. expansion plan. Chairman C.C. Wei said the second fab in Arizona has wrapped up construction after the first went into volume production in the fourth quarter of 2024. Notably, he suggested that the third and fourth fabs in Arizona are set to begin construction later this year.
He revealed that TSMC’s second Arizona fab may pull in around a couple of quarters at least, and the foundry giant tries to speed up the expansion thanks to strong customer demand.
As the first Arizona fab features 4nm production, the second fab will focus on 3nm, while the third and fourth fabs will feature more advanced nodes, including N2 and A16, Wei stated.
According to TSMC, the company will invest an additional $100 billion to build five more semiconductor plants and one R&D center in the coming years, bringing up TSMC’s total investment in the U.S. to $165 billion.
In detail, the expansion includes three new fabs, two advanced packaging facilities, and a major R&D center.
No Slowdown in Japan and Germany Expansion
Wei also shut down rumors of delays in its next Kumamoto fab, saying demand for mature and specialty nodes remains strong. Japan and Germany expansions are moving ahead as planned, he emphasized, despite talk of shifting focus to the U.S.
According to Wei, TSMC’s first specialty fab in Kumamoto started volume production in late 2024 with very good yield. Meanwhile, construction of the second fab in Japan is set to kick off later this year, depending on local infrastructure readiness, he added.
Wei also stated that TSMC has received strong commitment from the European commission and the German federal government, and will be on track for the expansion in Dresden. The site, which broke ground in August 2024, will be Europe’s first FinFET-capable pure-play foundry.
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(Photo credit:TSMC)
