TSMC Breaks Ground on Third Arizona Fab Facility

Commerce Secretary Visits Groundbreaking

TSMC (Taiwan Semiconductor Manufacturing Company) has begun construction on its third chip manufacturing facility in Phoenix, signaling a significant expansion of its operations in the United States. U.S. Secretary of Commerce Howard Lutnick visited a groundbreaking ceremony on the site on Tuesday.

Via Evertiq:

TSMC has broken ground on its third fabrication facility in Phoenix, Arizona, marking a major expansion of the company’s US-based manufacturing.

The new fab, part of a USD 100 billion additional investment by TSMC, is expected to significantly boost the country’s semiconductor capacity, producing chips for use in artificial intelligence, high-performance computing, and consumer electronics.

The investment is expected to create an estimated 40,000 construction jobs over the next four years, with tens of thousands of high-paying tech jobs to follow, and contribute over USD 200 billion in indirect economic output across Arizona over the next decade, according to company estimates, according to a press release from the White House.

TSMC’s Arizona operation is now the largest single foreign direct investment in US history. The expansion underscores the growing strategic importance of semiconductor manufacturing on American soil.

The groundbreaking coincided with the 100th day of President Trump’s administration. US Secretary of Commerce Howard Lutnick attended the event and praised the investment as evidence of the administration’s push to restore US industrial leadership.

Major TSMC customers and industry leaders expressed strong support for the project. Apple CEO Tim Cook called the expansion a boost for “the high-skilled American jobs of tomorrow,” while Nvidia’s CEO Jensen Huang described the administration’s support for US manufacturing as “vital—for the next industrial revolution.” AMD Chair and CEO, Lisa Su confirmed that the company would begin production of its 5th Gen EPYC server processors at the new fab later this year.

The facility is a centerpiece of the Trump administration’s Investment Accelerator Program, part of a broader strategy to reduce reliance on foreign supply chains.

TSMC (Taiwan Semiconductor Manufacturing Company Limited or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world’s largest dedicated independent semiconductor foundry, and its country’s largest company, with headquarters and main operations located in Hsinchu, Taiwan. Although the central government of Taiwan is the largest individual shareholder, the majority of TSMC is owned by foreign investors. In 2023, TSMC served 528 business customers and manufactured 11,895 products for various applications covering a variety of end markets including high performance computing, smartphones, the Internet of Things (IoT), automotive, and digital consumer electronics.