An In-Demand Product

Demand for the semiconductors that power the modern world are in great demand, and chip manufacturers are stepping up in the U.S., with hundreds of billions of dollars’ worth of semiconductor projects on the table, although not all of these will be built as planned. According to Industrial Info Resources data, there are 13 U.S. semiconductor projects valued at $85 million now under construction and another $632 billion worth of related capital projects planned for the future.

The geography of semiconductor spending, which has large effects on regional labor and power markets, is scattered throughout the U.S. In regard to current, on-the-ground projects, Arizona and Ohio are neck and neck for leading semiconductor investments, garnering around $28 billion each, while Idaho comes in a close third place thanks to a single $25 billion project.

Active Construction

Those projects giving the states their spending leads come from Taiwan Semiconductor Manufacturing Company (TSMC) in Arizona, Intel in Ohio and Micron Technology in Idaho. All of the companies are benefitting from funding from the CHIPS and Science Act passed in 2022.

TSMC in Arizona

Well before receiving the CHIPS Act funding, however, TSMC had broken ground on the first fabrication facility (fab) of a semiconductor manufacturing hub that the company is constructing in Phoenix, Arizona. That first fab began started operating in late 2024 and early 2025, but TSMC didn’t stop there. Another two fabs with a combined investment value of $24 billion are under construction in Phoenix, with startup dates of 2028 and 2030. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the related project reports. Industrial Info Resources is tracking another $330 billion that TSMC is considering dropping on the site, including three additional fabs and expansions to existing facilities.

Future U.S. Fab Construction

Semiconductor fabs often are multibillion-dollar undertakings, and developing moving them from the planning table to active construction requires lots of moving pieces to be accounted for, including funding, power availability, multiple air and land permits, as well as labor availability.

For that reason, which of the $632 billion in semiconductor projects in the planning and engineering stages will actually get moving relatively soon often is hazy. TSMC’s additional Arizona projects and Micron’s New York projects push those two states into the lead for future U.S. semiconductor project development, with Texas coming in a distant third place. Texas’ position comes largely from Texas Instruments‘ planned work in Sherman, where Industrial Info Resources is tracking two fabs that were completed last year at cost of $13.5 billion, and another two buildings that are planned, carrying a combined price tag of $15.9 billion.

A potential $25 billion expansion of Micron’s Idaho plant puts that state just below Texas for future semiconductor spending.