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TSMC Arizona
Semiconductor factory From Wikipedia, the free encyclopedia
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TSMC Arizona is a semiconductor manufacturing complex in Phoenix, Arizona, United States built by TSMC. Its chip fabrication plants are the first built in the United States and with a total US$ 165 billion pledged, it is one of the largest foreign direct investments into the country's manufacturing.
In 2025, TSMC's chief executive officer C. C. Wei announced that at completion, TSMC Arizona would have a "gigafab" cluster composed of six fabs, two advanced packaging facilities, and a research and development center.[2] As of 2025, the first fab has been completed and is producing four-nanometer (nm) chips. Production for 3 nm and 2 nm chips is targeted for 2028 and 2029, respectively.[2]
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History
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In 2020, TSMC announced a planned fab (Fab 21) in Phoenix, Arizona, intended to begin production by 2024 at a rate of 20,000 wafers per month. At that time, TSMC announced that it would bring its newest 5 nm process to the Arizona facility, a significant break from its prior practice of limiting US fabs to older technologies. The Arizona plant was estimated to not be fully operational until 2024, when the 5 nm process is projected to be replaced by TSMC's 3 nm process as the latest technology.[3] At launch it was expected be the most advanced fab in the United States.[4] TSMC planned to spend $12 billion on the project over eight years, beginning in 2021.[3] TSMC claimed the complex would create 1,900 full-time jobs.[5]
In December 2022, TSMC announced its plans to triple its investment in the Arizona plants in response to the growing tensions between the US and China and the supply chain disruption that has led to chip shortages.[6] In that same month, TSMC stated that they were running into major cost issues, because the cost of construction of buildings and facilities in the US is four to five times what an identical plant would cost in Taiwan, (due to higher costs of labor, red tape, and training), as well as difficulty finding qualified personnel (for which it has hired US workers and sent them for training in Taiwan for 12–18 months.) These additional production costs will increase the cost of TSMC's chips made in the US to at least 50 percent more than the cost of chips made in Taiwan.[7][8][9] The US Commerce Department later agreed to provide $6.6 billion in direct funding and up to $5 billion in loans to TSMC for the purposes of creating semiconductor manufacturing facilities in Arizona under the CHIPS and Science Act.[10]
In October 2024 it was revealed that development around the TSMC plants would be called Halo Vista, that will develop 3,500 acres of property from restaurants, hotels, housing, and other Mixed-use development. There will also be a Sonoran Oasis Research and Technology Park that will also help set up the supply chain and foster innovative development, much like how Hsinchu Science Park is to TSMC in Taiwan.[11]
In July 2025, Wei indicated that the company would speed up its production timelines on multiple manufacturing facilities following an additional $100 billion investment in Arizona. He stated that the completion of a "gigafab" cluster totaling six facilities would account for 30 percent of TSMC's 2-nanometer and more advanced capacity semiconductor production within the state.[12]
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Production
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Extreme ultraviolet lithography production equipment is sourced from ASML Holding.[13] Further key suppliers for production equipment include Applied Materials, ASM, Lam Research, KLA and Tokyo Electron as per a 2022 press release from TSMC.[14] TSMC holds additional partnerships with Amkor Technology for advanced packaging lines[15] and with Linde plc and Air Liquide for on-site supply of ultra-high-purity industrial gases. Linde supplies nitrogen, oxygen, and argon while Air Liquide supplies hydrogen, helium and carbon dioxide. [16][17]
Access to the factory is via Arizona State Route 303 to the south of the site, and via Interstate 17 to the east of the site.
1st Fab
On December 6, 2022 an opening ceremony was held for the first plant, attended by President Joe Biden along with Morris Chang (TSMC), Tim Cook (Apple Inc.), Jensen Huang (Nvidia), and Sanjay Mehrotra (Micron Technology).[18] Phase 1 began production with a 4 nm process in early-2025, at a rate of 10,000 wafers per month[1] with a plan to scale up to 30,000 wafers per month.[19]
The cost of construction was estimated at $40 billion and planned to be TSMC's largest investment outside of Taiwan.[18] Under the CHIPS and Science Act the United States Department of Commerce gave TSMC $6.6 billion as grants[20] plus another $5 billion as loan guarantees.[1]
Further build-out
As of 2025, construction on the second fab (3 nm process) has been completed, with the third fab (1.6 and 2 nm process) under construction.[19][21] TSMC targets production for 3 nm for 2028 and for 2 nm for 2029.[22]
As of March 2025[update] planned investment had been increased by $100 billion from $65 billion up to $165 billion,[23] and the number of planned fabs at the TSMC Arizona site increased from three to six. Additionally, two advaned packaging lines and an R&D center are to be part of the gigafab.[23]
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