TSMC May Build 12 Arizona Chip Fabs And 4 Packaging Plants In Major US Expansion
More details are emerging about TSMC's massive investment in chip manufacturing on U.S. soil, which now reportedly includes a dozen fabs and four advanced chip packaging plants in Arizona, according to Digitimes. Previously, TSMC had committed to six wafer fabs and two advanced packaging plants in The Grand Canyon State.
The expansion is part of a $500 billion investment announced in January. At the time, the U.S. Department of Commerce put out a press release calling it a "historic trade deal that will drive a massive reshoring of of America's semiconductor sector," as well as strengthen the economy, create high-paying jobs, and bolster national security.
Under terms of the deal, TSMC agreed to make new, direct investments of at least $250 billion to build and expand advanced semiconductor, energy, and artificial intelligence (AI) chip production in the U.S. TSMC also agreed to another $250 billion in financing support and government-backed credit guarantees to enable more long-term projects.
TSMC building in Arizona
Citing unnamed supply chain sources, Digitimes says the revised plan now includes a second piece of land near Fab 21 in Arizona that will become another Gigafab, bringing the total number of factories to 12, along with four advanced packaging facilities, as TSMC accelerates its expansion efforts.
The sources also note that this is TSMC's largest overseas investment project in the company's history, and it is viewed as being key to reinvigorating chip manufacturing the U.S. It's also growing as costs increase due to inflation and investments in "new special process technologies," according to a Google translation of the report.
TSMC has not confirmed the details of the reported expansion, at least not beyond what had already been announced. Regardless, TSMC has committed significant, long-term investments that could help restore chip manufacturing leadership in the U.S., paved in part by a tariff framework that includes a reciprocal tariff rate of no more than 15% on Taiwanese goods, among other incentivizing terms.
