U.S. Tech Giants Accelerate TSMC Arizona Expansion

Taiwan Semiconductor Manufacturing Company (TSMC) is accelerating the timeline for its multi-billion-dollar fabs in Arizona, driven by strong demand from major U.S. chipmakers AMD, NVIDIA, and Broadcom, according to a report from Economic Daily.

_{Fab 1: 4nm in Late 2024}

TSMC’s first Arizona fab (Fab 1) is now expected to begin 4-nanometer production in late 2024, earlier than its initial 2025 schedule, underscoring urgent demand from U.S. customers.

_{Fab 2: Brought Forward to 2026–2027}

The second fab (Fab 2), originally targeted for 2028, has been pulled forward to early 2027, with some sources suggesting a potential late 2026 start. It will likely focus on 3nm production, aimed at AI and high-performance computing markets.

_{Fab 3: Cutting-Edge N2 and A16}

A third fab (Fab 3) is now projected around 2028, with plans to introduce N2 and A16 nodes, cementing TSMC’s leadership in next-generation chipmaking technology.

U.S. Customers Drive Expansion

Industry insiders note that AMD, NVIDIA, and Broadcom are the key forces behind the accelerated timeline, as their massive demand in GPUs, networking, and AI semiconductors necessitates faster local supply.

Margin Pressure Remains

TSMC acknowledged that overseas fabs could dilute its gross margins by 2–3% annually, potentially rising to 4%. However, the company stressed that scale expansion, process optimization, and close customer partnerships will help offset the impact over time.

Industry Significance

The accelerated Arizona rollout highlights both Washington’s push to localize semiconductor supply chains and the booming demand for chips powering AI and high-performance computing. TSMC’s Arizona fabs are set to become a critical piece of the global semiconductor puzzle.