Wednesday, April 30th 2025

TSMC Reportedly Begins Construction of Third Arizona Production Location
As disclosed in a new press release—issued by the US Commerce Department—TSMC's North American operation has started another expansion. Last month, Taiwan's leading chip foundry committed a substantial $100 billion investment—eventually leading to a greater production footprint in Phoenix, Arizona. Reports suggest that ground has already been broken, in a low-key manner—as of yesterday (April 29)—at a planned third location, only hours after TSMC's receiving of permits—aka a "thumbs up" from the US government. According to local news outlets, key administrative representatives were in attendance to witness the initiation of construction work. TSMC's third plant is destined to pump out cutting-edge products via a 2 nm (N2) process technology, with Apple, NVIDIA and AMD confirmed as "front of the queue" customers. Despite recent fanfare and celebrations, industry analysts reckon that it will take up to a decade for the foundry's North American operation to solidify a dependable supply chain. In the interim, certain elements will require shipping to overseas locations—for packaging and finalization purposes.
Sources:
Bloomberg, Wccftech, AZ Central
7 Comments on TSMC Reportedly Begins Construction of Third Arizona Production Location
They have a vested interest in putting their production facilities in places other than one island within striking distance of their strongest oppressing force, and safeguarding them against another supply chain collapse.
you need to sprinkle them out all over the place so your specialists need to travel by aircraft and create wait times of weeks to fix problems that could be done in hours if things were close together.
People think taking a tariff sledgehammer to the system to hurry up & bring all this stuff into the US is somehow going to change things. Sure, it looks good, sounds good, but as I've said in another post, its a wealth distribution problem. Building plants in the US that provide tens of thousands of jobs that pay $20-$30/hr don't mean squat when income growth stays in the single digits for them in conjunction with ever decreasing buying power while the $500 million+ club continue to see an income growth of 40% or more. China invading Taiwan won't happen any time in the near future. They would be hurting themselves just as much as Taiwan and end up gaining nothing except control of a ruined country with nothing to show for it.
There is no need for a specialist in operating euv machines to come and tinker with the machines that make PCB’s for motherboards.
The factory that makes silicon boules doesn’t need to sit next to the facility that slices wafers from it.
But it would be interesting to have the slicing place be close to the foundry…