TSMC announced another major expansion of its Arizona operations, announcing plans to invest an additional $100 billion to build four more 2-nanometer or more advanced fabs in the state. The announcement brings TSMC’s total investment in Arizona to $265 billion — representing 10 fabs, 2 advanced packaging facilities, and an R&D center, all supporting thousands of high‑tech jobs.
“TSMC’s historic investment firmly establishes Arizona as the nation’s epicenter for advanced semiconductor manufacturing and innovation,” said Governor Katie Hobbs. “With America’s most advanced chip‑making technologies, world‑class education partners, and a fast‑growing workforce, Arizona is poised to lead the future of AI and next‑generation technologies. I’m grateful to TSMC, and all our partners for making this transformational moment possible.”
“The future of advanced semiconductor manufacturing is in Phoenix, and TSMC’s additional $100 billion investment reflects the extraordinary momentum and ability we have in Phoenix to support the world’s most consequential technologies,” said City of Phoenix Mayor Kate Gallego. “Phoenix’s next-generation innovation will strengthen America’s economic competitiveness for decades to come.”
“Today’s announcement marks a watershed moment for Arizona and America’s semiconductor industry — strengthening U.S. competitiveness and securing critical supply chains for decades to come,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “Arizona is America’s Semiconductor HQ, home to the country’s most advanced and fastest‑growing semiconductor ecosystem. From leading‑edge fabs to suppliers and next‑gen R&D, Arizona is shaping the future of global innovation. We’re incredibly grateful to Dr. C.C. Wei and the entire TSMC team for their continued commitment to our state, and thankful for the tremendous support from President Trump, the U.S. Department of Commerce, Governor Hobbs, the Arizona Chamber of Commerce and Industry, and all our federal, state, and local partners.”
Background on TSMC in Arizona
TSMC’s first fab in Arizona has been in volume production of N4 Technology since late 2024, with yields comparable to TSMC’s facilities in Taiwan. The construction of its second fab, which will utilize 3-nanometer process technologies, is already complete, with volume production expected to begin in 2027.Upon completion of its announced fabs, around 30% of TSMC’s 2-nanometer and more advanced capacity will be located in Arizona, creating an independent leading-edge semiconductor manufacturing cluster. TSMC Arizona currently employs more than 3,500 people in the state.
Arizona: America’s Semiconductor HQ
Since 2020, Arizona has attracted more than 70 semiconductor expansions, representing over $314 billion in investment – the most in the nation. Expansions in Arizona span the entire value chain, including leading edge manufacturing, equipment, materials suppliers, advanced packaging, R&D, and workforce development.
To meet the demand for skilled workers, state, regional, and federal partners have launched an unprecedented effort to develop new skills training pathways, with initiatives such as the Future48 Semiconductor Workforce Accelerator and NNME Southwest Node.
