TSMC to build third chip fab in Arizona, US

TAIPEI (TVBS News) — Taiwan Semiconductor Manufacturing Company (TSMC) announced on Tuesday (April 9) that it plans to build its third chip fab in Arizona, United States, while it also stated that the company's focus will still be in Taiwan.

TSMC's process technologies are primarily based in Taiwan, with the ones in the U.S. expected to lag behind Taiwan by one generation. TSMC will maintain 80 to 90 percent of its production capacity in Taiwan, keeping the country as the critical focus of its production.

TSMC's 3nm process holds over 80 percent of the global market share. Its advanced semiconductor technology (below 7nm) are distributed across Hsinchu, Taichung, and Tainan Science Park. Taichung is a major production hub for 7nm processes, while Tainan is for 5, 4, and 3nm processes.

TSMC's new factories in Hsinchu's Baoshan and Kaohsiung will be the main production bases for the 2nm process. The Baoshan factory is currently being equipped and is preparing for trial production, with mass production scheduled for the second half of next year. The Kaohsiung factory, originally scheduled for mass production in 2026, is now aiming for the second half of 2025.

TSMC is also actively planning for a 1nm site, currently choosing Taibao Science Park in Chiayi, but requires government assistance for land acquisition. The Southern Taiwan Science Park Bureau (NSTC) and Chiayi County Government are handling the expansion, while the Yunlin County Government is also actively vying for TSMC to choose Yunlin as a 1nm factory site.

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