TSMC Charts Course for Arizona Expansion, Bringing Cutting-Edge Chip Production Stateside
Taiwan Semiconductor Manufacturing Co. (TSMC) is set to bring its 2-nanometer chipmaking prowess to Arizona, with production slated to begin around 2028. This timeline aligns with Taiwanese regulations ensuring a three-year lag between domestic and international deployment of its most advanced semiconductor technologies. ‘TSMC plans to begin large-scale production of 2nm chips in Taiwan by 2025, with trial production already taking place at its Hsinchu County site,’ confirmed Wu Cheng-wen, head of Taiwan’s National Science and Technology Council (NSTC).
A Trifecta of Fabs: Expanding Arizona Production Hub
TSMC’s massive Arizona expansion encompasses three state-of-the-art facilities, each poised to contribute significantly to the growing U.S. semiconductor industry. The first of these fabs is expected to begin churning out 4nm chips in early 2025. The second fab will follow, gearing up to process both 3nm and 2nm chips starting in 2028.
The third factory, a massive undertaking announced alongside a $6.6 billion interim subsidy agreement, will be laser-focused on 2nm technology, potentially even more advanced nodes. Production is projected to begin by the end of 2030.
Taiwan Running Ahead: Accelerating 2nm Chip Production
While TSMC sets its sights on Arizona, it continues to aggressively scale up 2nm chip production in Taiwan. Its Baoshan factory in Hsinchu County is on track to reach full production capacity in 2025, with another factory slated to come online a year later in 2026. Further south, in Kaohsiung, the first 2nm factory is expected to begin operations in 2026, joined soon after by a second facility currently under construction.
This parallel track of expanding both domestic and international production capacities reflects TSMC’s commitment to remaining at the forefront of chip innovation while supporting global demand.
CHIPS-Funded Push Forward: Driving Advanced Technology
Last month, TSMC secured final approval for $6.6 billion in funding under the CHIPS incentive program, a testament to the strategic importance of semiconductor manufacturing in the United States.
This substantial investment paves the way for the deployment of A16 technology at the Arizona facility – a revolutionary approach featuring a groundbreaking nanosheet architecture and “Super Power Rail” technology. These advancements promise more efficient chips by integrating more logic while simultaneously enhancing power delivery.
Balancing Global Reach: Domestic Production Takes Priority
Transferring its most advanced semiconductor technologies overseas is a carefully managed process, subject to close scrutiny by Taiwan’s Ministry of Economic Affairs. ‘TSMC must ensure domestic production of its most advanced processes before considering moving them overseas,’ the Ministry emphasized.
This measured approach ensures that Taiwan maintains its leadership in the global chip race while providing a boost to semiconductor manufacturing capabilities in allied nations.
What is the main reason that 2nm chip production in Arizona will be delayed until 2028?
## TSMC: Arizona Bound for Cutting-Edge Chip Production
**Host:** Welcome back to the show. Today, we’re diving into the exciting world of semiconductor manufacturing with a focus on Taiwan Semiconductor Manufacturing Co., or TSMC. Joining us is Professor Alice Chen, a technology expert specializing in global chip production. Professor Chen, thanks for being here.
**Professor Chen:** It’s a pleasure to be here.
**Host:** TSMC made headlines recently with its ambitious expansion plans in Arizona. Can you give us the lowdown on what’s happening?
**Professor Chen:** Absolutely. TSMC is building not one, not two, but *three* state-of-the-art chip fabrication factories, or fabs, in Arizona. This is a massive investment, totaling $65 billion, driven in part by the U.S. CHIPS Act. [[1](https://www.azcentral.com/story/money/business/tech/2024/04/08/tsmc-to-get-6-6-billion-from-chips-act-3rd-arizona-fab-announced/73232207007/)]
**Host:** Incredible scale! And what will these Arizona fabs be producing?
**Professor Chen:** The first two will be churning out 4nm and 3nm chips starting in 2025 and 2028, respectively. But the third fab, set to open by the end of 2030, is focused on the cutting-edge: 2nm chips. This is truly groundbreaking technology. [[1](https://www.azcentral.com/story/money/business/tech/2024/04/08/tsmc-to-get-6-6-billion-from-chips-act-3rd-arizona-fab-announced/73232207007/)]
**Host:** 2nm chips – that’s incredibly small! Why is this such a big deal?
**Professor Chen:** Think of it like this: smaller transistors mean faster processing speeds, less power consumption, and more powerful devices. These are essential for everything from smartphones to advanced AI. Having this capability in the U.S. is a major win for American innovation and technological leadership.
**Host:** It sounds like a significant move for both TSMC and the United States. Any thoughts on the timeline and Taiwanese regulations?
**Professor Chen:** Absolutely. TSMC is prioritizing its home country. Laws in Taiwan require a three-year gap between domestic and international deployment of their most advanced chip technology. So while production of 2nm chips will begin in Taiwan in 2025, the Arizona fab won’t start churning them out until 2028. [[1](https://www.azcentral.com/story/money/business/tech/2024/04/08/tsmc-to-get-6-6-billion-from-chips-act-3rd-arizona-fab-announced/73232207007/)]
**Host:** Professor Chen, thank you so much for illuminating this complex topic. It seems TSMC’s Arizona expansion is a major leap forward for the future of semiconductor manufacturing.
**Professor Chen:** My pleasure. It’s a fascinating time to be watching this industry evolve.
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