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TSMC Breaks Ground on Third Arizona Semiconductor Plant in $100 Billion Expansion

The new facility, part of the largest foreign direct investment in U.S. history, will produce cutting-edge chips for AI, data centers, and smartphones.

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Overview

  • TSMC has officially started construction on its third semiconductor fabrication plant in Phoenix, Arizona, within hours of receiving government approval.
  • The $100 billion expansion is expected to generate 40,000 construction jobs, tens of thousands of high-tech positions, and over $200 billion in economic output for Arizona over the next decade.
  • This project is part of TSMC’s broader U.S. investment strategy, which has already delivered two operational fabs producing 4 nm chips as of early 2025.
  • The third fab will focus on advanced semiconductor technologies, supporting industries like artificial intelligence, high-performance computing, and mobile devices.
  • High-level support from the U.S. government, including Commerce Secretary Howard Lutnick’s visit, highlights the administration’s emphasis on bolstering domestic manufacturing and supply chain security.