TSMC to begin construction on 3rd fab in Arizona in mid-2025, entire year earlier than planned

TSMC is reportedly planning the construction of a 3rd fab in Arizona by mid-2025, an entire year earlier than planned, and will invite top US officials to a ground-breaking ceremony as early as June 2025.

2

TSMC is also considering a new CoWoS advanced packaging plant for the US, with TSMC CEO C.C. Wei discussing these decisions with Arizona semiconductor fab executives after its board meeting on Wednesday on US soil: the first time TSMC has hosted a board meeting in the US in its 37-year history.

Construction of TSMC's second fab in Arizona is well underway, with the main fab building completed and clean room installations are now on their way. Equipment move-in is penciled in for the end of Q1 2026, which means we can expect risk production by the end of 2026.

The decisions of a new Arizona fab and a proposed new CoWoS advanced packaging plant are part of TSMC's increased presence in the United States, with President Trump recently saying that Taiwan "took our chip business away" and that "we want that business back". On top of that, the White House is apprehensive of allowing foreign entities to control semiconductor companies like Intel.

New reports suggest Intel could get some (much-needed) help from TSMC, but the Trump administration is playing its hands carefully, not wanting foreign entities to continue to control the industry (and more so, on US soil).