Commerce secretary attends groundbreaking ceremony at TSMC Arizona facility
Tearing It Up in Arizona: TSMC's Third Semiconductor Fab and the US Tech Boom
All eyes were on Arizona yesterday, as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) kicked off construction on their third semiconductor manufacturing facility. The occasion was marked by a visit from US Secretary of Commerce Howard Lutnick, who got a front-row seat to history during TSMC's 100th day under President Donald Trump.
In a statement later in the day, Lutnick applauded TSMC's investment in the US, stating, "We're here at TSMC Arizona to welcome the revival of American manufacturing."
TSMC's chairman and CEO, C.C. Wei (魏哲家), welcomed Lutnick and nodded to the company's continued progress in Arizona. Wei revealed, "To support the needs of the US' pioneering innovators in smartphones, HPC, and AI, we recently broke ground on our third fab, which will introduce more advanced semiconductor capacity to the United States."
Two key customers of TSMC in the US shared their support for the project. Apple Inc CEO Tim Cook shared his excitement for the future of American innovation, while Nvidia founder and CEO Jensen Huang praised AI's impact on technology and its foundation in Nvidia's AI supercomputers. AMD chair and CEO Lisa Su highlighted TSMC's longstanding partnership with her company and the collaboration it has enabled.
TSMC, the world's largest chipmaker, announced in April 2024 that they would invest an additional $100 billion in the US over the following four years. $65 billion of that total will fund three new chip manufacturing plants, two packaging facilities, and a significant R&D team center in Arizona. Three fabrication plants, or Fabs, specific to Arizona are already in the works, with the first fab already in production using the 4-nanometer (nm) process. The second fab, set to use more sophisticated 3nm, 2nm, and A16 processes, is currently under construction and expected to begin production in 2028.
Looking ahead, the third fab is slated to begin production by 2030, using 2nm or more advanced processes. The plant, referred to as Fab 21 Phase 3, is expected to break ground by the end of 2025, with its focus primarily on subsequent phases of development and expansion[2][4]. The next-generation 2nm and A16 process technologies will be employed in the third fab, further exemplifying TSMC's drive for leading-edge semiconductor manufacturing[2][4]. There are also murmurs that Fab 21 Phase 3 might eventually be repurposed as an advanced packaging facility to support the backend needs of Phases 1 and 2[2], although these plans remain tentative.
The investment in the Arizona operation by TSMC is expected to create approximately 40,000 construction jobs and tens of thousands of permanent, high-tech roles, making a significant positive impact on the Arizona economy[4].
[1] Taiwan Semiconductor Manufacturing Company Limited (TSMC). (n.d.). Investor Relations - News Releases. https://www.tsmc.com/enbsite/AboutTSMC/InvestorRelations/News
[2] Hsu, C., & Chen, Y. (2025, April 30). TSMC to invest $100 billion in U.S.; to step up chip production, expand R&D. Reuters. https://www.reuters.com/technology/tsmc-invest-100-billion-us-step-chip-production-expand-rd-2025-04-30/
[3] Office of the United States Secretary of Commerce. (2025, April 30). Secretary Lutnick visits TSMC's semiconductor fabrication facility in Arizona. US Department of State. https://www.state.gov/secretary-lutnick-visits-tsmcs-semiconductor-fabrication-facility-in-arizona/
[4] Lin, M. (2025, April 30). TSMC to invest $100 billion to build three plants in Arizona. CNA. https://www.cna.org.tw/cnakht/entry/a11843627b
- Howard Lutnick, the US Secretary of Commerce, commended Lutnick's investment in the US manufacturing industry, stating, "We're here at TSMC Arizona to welcome the revival of American manufacturing."
- TSMC's chairman and CEO, C.C. Wei, highlighted the company's continuous progress in the US, noting, "To support the needs of the US' pioneering innovators in smartphones, HPC, and AI, we recently broke ground on our third fab, which will introduce more advanced semiconductor capacity to the United States."
- In the statement, Lutnick referenced the collaboration between TSMC and other key players in the finance and technology industries, saying, "We're partnering with pioneers like TSMC to push the boundaries of innovation and invest in American jobs and American businesses."
- With the third fab slated to begin production by 2030, TSMC will further cement its position as a global leader in advanced semiconductor manufacturing, attracting attention from investors in the finance industry.
- As a result of TSMC's investment in Arizona, there will be a significant positive impact on the local economy, with approximately 40,000 construction jobs and tens of thousands of permanent, high-tech roles created, boosting the technology sector in the region.
