TSMC recently announced that it plans to invest $100 billion to boost chip production in the US. As TSMC aims to be in line with President Trump’s goal of increasing domestic manufacturing, it has now revealed plans to produce advanced chips in the US.
Amid speculations, TSMC confirms its plans to produce advanced chips in the US
TSMC was initially reluctant about wafer production in the US due to the higher manufacturing costs. However, a report from last week suggested otherwise. Per the report, the production cost of chips in the US is slightly higher compared to Taiwan. Now, FocusTaiwan reports that TSMC will produce the advanced chips in its third fab facility in the US.
TSMC VP for global policy, Peter Cleveland, said, “We have not started to break ground on our third wafer fab in Phoenix. We would like to start next week. We’re going to build those in Phoenix to sustain the US AI leadership.” While TSMC is helping the US government, it wants to make the US its second home after Taiwan for advanced chip manufacturing.
To catch you up, TSMC had announced investing $65 billion in Arizona to build three fab facilities. The very first one would be responsible for the production of 4nm chips. The second fab facility is where TSMC plans to produce advanced 2nm and 3nm chips. TSMC says that it’s under construction and expects to begin production in 2028.
Finally, the company aims to start production using 2nm tech and even “more advanced processes” in its third fab by 2030. TSMC’s second and third fab facilities would also be responsible for making advanced chips for newer Apple devices.
The manufacturer is working closely with the US government
TSMC has reportedly also discussed structural issues with the US Department of Commerce. Speaking about the company’s relation with the Trump administration, Cleveland said, “We are optimistic about our collaboration and partnership going forward with the Trump administration as well as Capitol Hill.” The executive further stated that the country accounts for 75% of TSMC’s business. TSMC is also coordinating with the government so that its advanced chips “get sold and distributed in the right ways.”
