TSMC raises Arizona chip investment to US$40 billion

TSMC is expanding its Arizona chipmaking investment to approximately US$40 billion across two factories, the company announced on 6 December 2022.

The first fab is scheduled to make N4 chips in 2024. Construction has begun on a second, with 3nm production targeted for 2026.

TSMC expects the completed pair to produce more than 600,000 wafers annually. These remain construction and production plans.

Two planned fabs with different production targets. — TSMC’s announced schedule; both dates are targets.

A larger manufacturing commitment

The original May 2020 proposal covered one Arizona fab using 5nm technology and approximately US$12 billion in spending from 2021 to 2029. TSMC framed that project as a way for US chip designers to manufacture advanced products closer to home and work alongside its foundry and suppliers.

The earlier plan also distinguished Arizona from TSMC’s existing US operations: a factory in Camas, Washington, and design centres in Austin and San Jose. Arizona would add another manufacturing location, rather than establish the company’s first US presence.

Customers and supply chains

Speaking at the Phoenix facility, President Joe Biden said the chips would power iPhones and MacBooks and described Apple as bringing more of its supply chain to the United States. He placed the project alongside investments by other chipmakers as an effort to strengthen domestic manufacturing.

For computing companies, the announcement points to future sourcing options. Those changes depend on the fabs reaching production and customers incorporating their output into devices.