TSMC says it will manufacture 30% of most advanced chips in Arizona

Article originally posted on HERE on April 17, 2025

TSMC factory in Arizona

The Taiwan Semiconductor Manufacturing Co. will produce 30% of its most advanced chips in Arizona when its six Phoenix plants are operational, the company announced on an earnings call Thursday.

Why it matters: Chairman and CEO CC Wei told investors the scope of the company’s Phoenix investment will create “an independent leading-edge semiconductor manufacturing cluster in the U.S.”

  • This is part of TSMC’s efforts to diversify its semiconductor manufacturing footprint outside of the political volatility in Taiwan and supports the bipartisan U.S. national security push to increase domestic chips production and accelerate the AI economy.

The big picture: TSMC, the world’s leading chips manufacturer, has committed $165 billion to its Arizona operation.

State of play: TSMC’s first Phoenix semiconductor factory began production late last year and construction on the second fab is now complete, Wei said on the call.

  • The company plans to begin construction on its third plant — the first in the U.S. that will utilize its most-advanced process technologies — later this year, the CEO added.
  • TSMC will then build three additional semiconductor manufacturing plants, two advanced packaging facilities and a major research and development center in Arizona. The timeline for those projects has not yet been released.
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