TSMC Arizona Fab Overview

TSMC Arizona is one of the major semiconductor fab plants located in the Phoenix, Arizona region. This TSMC fab in the US includes Fab 21, which manufactures N4 process technology; the second fab is under construction, while the third fab broke ground in April 2025. This project was announced back in 2020 with an initial investment of USD 12 billion, which was later increased to USD 165 billion, representing the largest FDI (Foreign Direct Investment) in a greenfield project in American history.

It is one of the most advanced semiconductor fabs by TSMC (Taiwan Semiconductor Manufacturing Company) and includes three fab plants that collectively manufacture millions of leading-edge logic chips used in 5G/6G smartphones, autonomous vehicles, and high-performance computing and AI applications. The first fab of the TSMC Arizona is operational, with the second and third ones under construction. The plant is further expanded with three more advanced fabs, bringing the total semiconductor fabs in Arizona to 6. 

TSMC Arizona Fab Background

The fab was initially announced back in 2020 with an investment of USD 12 billion in Phoenix, Arizona, for an advanced semiconductor manufacturing fab, and acquired a land of 1,129 acres in North Phoenix. The construction of the Arizona Fab 21 began in April 2021. Initially, the project was planned with an investment of USD 12 billion was later revised to USD 165 billion.

The first fab began the production of N4 process technology in Q4 of 2024, with the second fab construction reaching completion in 2025 and volume production on N3 process technology targeted for 2028. The third fab broke ground in April 2025 and will produce N2 and A16 process technologies targeting production by the end of the decade.

The TSMC Arizona project also received a direct funding of USD 6.6 billion from the US government under the US Department of Commerce under the CHIPS Act. Recently, in March 2025, the company announced USD 100 billion for three more advanced fabs, two semiconductor packaging facilities, and a dedicated research and development center.

TSMC Fab in Arizona - Location

The TSMC fab in Arizona is located in North Phoenix. It is spread across a 3.5-million-square-foot building that stands on 1,100 acres in the Arizona desert north of Phoenix. 

TSMC Arizona Fab Cost

Initially, the project cost of TSMC Arizona was USD 12 billion in 2020, which was later expanded to USD 165 billion, making it one of the largest FDI (Foreign Direct Investment) in a greenfield project in American history.

TSMC Arizona Fab Timeline

TSMC Arizona Fab Layout 

It will also include three more advanced fabs, two semiconductor packaging facilities, and a dedicated research and development center as a part of the USD 100 billion investment announced by TSMC in March 2025. 

TSMC Arizona Fab Contractors & Suppliers

TSMC Arizona Clients/Customers

Investors of TSMC Arizona

TSMC’s Arizona Fab project was mainly funded by TSMC. The company initially invested USD 12 billion, which was further increased to USD 65 billion, announcing a third fab in 2024. 

In March 2025, the company announced an additional investment of USD 100 billion to support three more advanced fabs, two packaging facilities, and a dedicated R&D center, bringing the total project investment to USD 165 billion. The U.S. government has also backed the project, providing USD 6.6 billion in direct funding under the CHIPS Act. 

Benefits

• Technological Advancement: TSMC Arizona manufactures advanced 4nm and 5nm chips, making it one of the most advanced semiconductor fabs in the US. by TSMC.

• Supply Chain Resilience: This advanced semiconductor fab reduces U.S. dependency on overseas semiconductor production.

• Support for Tech Industry: TSMC Arizona offers its cutting-edge chips to major industry players such as Apple, NVIDIA, and Qualcomm.

• National Strategic Importance: As one of the advanced semiconductor fabs in the US and with an additional expansion through three more advanced fabs, two packaging facilities, and a dedicated R&D center, this TSMC US fab is further strengthening the U.S. semiconductor sector and technology security.

TSMC Arizona Expansion

TSMC’s Arizona project’s Fab 21 plant is currently operational. The company in April 2024 announced the construction of a third fab, increasing its total investment to USD 65 billion.

While Fab 2 is currently under construction and is expected to come online by 2028, the third fab broke ground in April 2024 and is expected to begin production by the end of 2030.

TSMC in March 2025 announced an additional investment of USD 100 billion to establish three more advanced fabs, two semiconductor packaging facilities, and a dedicated research and development center. This investment has brought the total project value of TSMC Arizona to USD 165 billion. 

Conclusion

TSMC Arizona is one of the most advanced semiconductor fabs in the US by the company outside Taiwan. With three fabs initially planned with an investment of USD 65 billion, the company further expanded the project with three more advanced fabs, two semiconductor packaging facilities, and a dedicated research and development center with an additional investment of USD 100 billion, totalling the project cost to USD 165 billion.

The first fab (fab 21) is operational since Q4 2024 and produces N4 process technology, the second fab is under construction and is expected to come online by 2028, with the third fab, announced in April 2024, expected to become operational by the end of 2030.

The project gained immense support from the US government and received USD 6.6 billion in direct funding from the US Department of Commerce under the CHIPS Act. TSMC Arizona continues to play a crucial role in increasing U.S. production of advanced semiconductor technology and elevating the state of Arizona as an American center of innovation. Through cutting-edge technology chips that will be used in 5G/6G smartphones, autonomous vehicles, and high-performance computing and AI applications.

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