TSMC’s 3nm chip factory in Arizona will begin production in 2026

TSMC is going to build a second factory in the US state of Arizona. This factory will produce 3nm chips. Production at the plant should start from 2026, TSMC confirms at a ceremony in the United States.

TSMC confirms its new chip manufacturing plans in the state of Arizona in a press release. The 3nm chip factory will be located near the first TSMC factory in the city of Phoenix, which the company already announced in 2020. This first factory will become operational in 2024 and will then produce chips on TSMC’s N4 process. The 3nm factory follows two years later. TSMC recently told Asian media that it would start manufacturing 3nm chips in the US.

TSMC is investing a total of $40 billion in the construction of its two US chip factories. In 2020, the company still talked about an amount of 12 billion dollars for the first factory. Part of the costs will likely be covered by a grant from the US government, as part of the Chips and Science Act.

The manufacturing sites collectively provide 10,000 engineering jobs, including 4,500 direct jobs at TSMC, according to the company. The Taiwanese chip manufacturer says it will produce a total of more than 600,000 wafers annually in its two factories. The manufacturer also plans to build a water treatment plant to ensure that the TSMC campus in Arizona has virtually zero discharge of fluids.

The two TSMC chip factories are part of American ambitions to become less dependent on Asian countries for chip production. The reason for this is increasing geopolitical tensions, for example between Taiwan and China. To this end, the country is introducing a Chips Act with billions of dollars in support for the chip sector. The EU is doing the same and countries such as Japan are also investing heavily in their chip sector.