Overview

• TSMC began construction on its third semiconductor fabrication facility in Phoenix, Arizona, as part of its $100 billion US investment commitment.
• Commerce Secretary Howard Lutnick visited the site on April 29, 2025, highlighting the administration's focus on revitalizing US manufacturing.
• The expansion is expected to create 40,000 construction jobs over four years, tens of thousands of high-tech positions, and $200 billion in indirect economic output in Arizona over the next decade.
• TSMC’s Arizona fabs aim to match the advanced production capabilities of its Taiwan facilities, with plans to introduce 2 nm processes by the end of the decade.
• The Trump administration secured this investment without direct subsidies, using tariffs and potential CHIPS Act grant leverage to incentivize domestic manufacturing.