TSMC’s board of directors has approved the purchase of 900 acres of land in Phoenix, Arizona, during an Arizona State Land Department auction on January 7.
The land parcel is located near Loop 303 and Interstate 17, close to TSMC’s existing site.
The transaction totaled $197 million, local news outlets reported, and will allow the chipmaker to expand its planned GigaFab (Giant Ultra Large Fab) cluster in the region, as outlined by chairman Wei Zhejia during the company’s October earnings call.
To date, TSMC has invested more than $65 billion in the construction of three chip fabs in Phoenix. In March 2025, the company doubled down on its investment in the US, announcing plans to invest up to $100bn into the US chip manufacturing industry. In total, TSMC is planning to build six wafer fabs, two advanced packaging plants, and one R&D center in Arizona.
In October 2024, TSMC announced it had signed a Memorandum of Understanding with Amkor, which will see Amkor provide the chipmaker with turnkey advanced packaging and test services at the forthcoming outsourced semiconductor assembly and test company (OSAT) plant in Peoria, Arizona.
Customers at the chipmaker’s Arizona fab include Apple, Nvidia, AMD, and Tesla. In 2025, both AMD and Nvidia announced that their respective chips have started to be manufactured at the site.
However, in July, AMD CEO Lisa Su said that chips manufactured at TSMC’s Arizona fab would be “more than five percent but less than 20 percent” higher in terms of cost than those produced by the chipmaker at its facilities in Taiwan, before adding that it was a “very good investment to ensure that we have American manufacturing and resiliency.”
