On January 13, The New York Times reported, citing informed sources, that TSMC will significantly expand its U.S. investment with plans to construct at least five additional wafer fabs in Arizona. This move will nearly double the number of TSMC factories in the state, forming a large-scale semiconductor cluster in the United States alongside its existing projects.
The expansion is part of a broader trade agreement between the United States and Taiwan. According to reports, the Trump administration is advancing tariff negotiations with Taiwan, with an announcement expected as early as this month. A key provision would lower tariffs on Taiwanese goods exported to the U.S. from 20% to 15%, with TSMC’s increased U.S. fab investment serving as a critical condition for securing these tariff concessions. Since 2020, TSMC has completed one fab in Arizona, with a second under construction and scheduled for production in 2028. The company had previously committed to building four more fabs in the coming years; with the new five-fab plan, its total in Arizona will reach seven facilities, pushing total investment in the state well beyond $200 billion.
The Wall Street Journal further detailed the production focus of the new fabs. They will primarily manufacture logic chips—key processors designed by TSMC’s major clients such as NVIDIA and AMD for AI and advanced computing applications—directly addressing strong demand from U.S. data centers and autonomous driving markets. TSMC has also pledged to build two additional fabs dedicated to advanced packaging, supporting the broader semiconductor manufacturing ecosystem in the United States.
TSMC’s U.S. expansion has faced significant challenges. The company has previously noted that building fabs in the U.S. costs at least four times more than in Taiwan, due to higher labor, regulatory, and logistical expenses. However, to secure tariff benefits and policy stability, TSMC continues to advance its geographic capacity diversification strategy. As of publication, TSMC’s spokesperson has not commented on the reported investment and expansion plans.
ICgoodFind : TSMC’s substantial additional investment in the U.S. will significantly reshape the global semiconductor supply chain, reflecting strategic industry adjustments driven by geopolitics and market demands.
