TSMC To Increase US Investment To $40 Billion, Starts Construction Of Second Fab In Arizona To Produce Advance 3nm Chips

Taiwan Semiconductor Manufacturing Compnay (TSMC) has begun construction of a second plant at its TSMC Arizona site in Phoenix.

The facility will produce 3nm process technology and is set to open in 2026.

The new plant is being built in addition to the first fab at the TSMC Arizona site, which is set to begin production of N4 process technology in 2024. The two fabs are expected to create around 10,000 high-tech jobs.

The company, which is building a $12 billion chip facility in Arizona, on. Tuesday (6 December) announced that it will increase its investment in the US state to $40 billion to build a second, more advanced chip manufacturing plant there.

When both plants are complete, they will be capable of producing over 600,000 wafers annually.

The new facility is part of TSMC's commitment to green manufacturing, and will feature an on-site Industrial Water Reclamation Plant.

The overall investment for these two fabs will be approximately $40 billion, representing the largest foreign direct investment in Arizona history and one of the largest foreign direct investments in the history of the United States.

The announcements were made at TSMC’s opening ceremony to celebrate the first batch of state of-the-art semiconductor manufacturing equipment to arrive in TSMC Arizona.

The ceremony was attended by United States President Joe Biden and Commerce Secretary Gina Raimondo and other US officials and busineespersons.

"When complete, TSMC Arizona aims be the greenest semiconductor manufacturing facility in the United States producing the most advanced semiconductor process technology in the country, enabling next generation high-performance and low-power computing products for years to come,” said TSMC Chairman Mark Liu.

“We are thankful for the continual collaboration that has brought us here and are pleased to work with our partners in the United States to serve as a base for semiconductor innovation.”

During the ceremony, TSMC revealed six semiconductor tools which are designed to support production of leading-edge semiconductor process technology. Among these include tools from the company's long-time suppliers Applied Materials, ASM, ASML, Lam Research, KLA and Tokyo Electron.