Taiwan Semiconductor Manufacturing Company (TSMC), the Taiwanese giant responsible for producing all of Apple’s processors, is set to begin construction on its third chip foundry in Arizona this year. The new plant could be up and running in as little as two years, marking an impressive acceleration compared to the timeline of TSMC's first U.S. factory.

Currently, TSMC’s first U.S. plant is operational, producing chips for Apple, while the second facility is still under construction.

TSMC Expands U.S. Foundry Operations

TSMC, which produces the iPhone and Mac processors designed by Apple, has long been based in Taiwan for its production needs. However, tax incentives from President Joe Biden’s CHIPS and Science Act encouraged the company to bring some of its chip-making operations to the United States. Additionally, in March, TSMC committed to investing another $100 billion in its U.S. operations, likely as a response to President Donald Trump’s previous tariff threats.

The first TSMC foundry in Arizona now manufactures two types of Apple processors. But that’s just the beginning.

“The chip titan is now busy installing clean room facilities at a second, more advanced plant in the state that will begin pilot production by next year,” reported Nikkei Asia.

The first foundry in Arizona produces 5nm chips, while the second will focus on 3nm chips starting in 2028. The new third plant, however, will be dedicated to manufacturing cutting-edge 2nm processors.

According to sources speaking to Nikkei Asia, construction of the third TSMC chip factory is expected to begin in 2025, with the goal of having it up and running before the end of the decade. However, some sources suggest that the plant could be completed in about two years, ahead of the official schedule.

As TSMC is the exclusive supplier of CPUs for iPhone, Mac, iPad, and Apple Watch, it’s almost certain that many of the chips produced in Arizona will end up in Apple products.

What to Expect from TSMC’s Arizona Expansion

First Foundry

‍Produces 5nm chips for Apple products.

Second Foundry

‍Under construction, set to produce 3nm chips by 2028.

Third Foundry

‍Construction begins in 2025, expected to produce 2nm processors by the end of the decade.

The expansion of TSMC’s operations in the United States is a significant step in securing a stable, domestic supply chain for some of the world’s most advanced semiconductors.

Why It Matters

‍TSMC’s investment in Arizona is a game-changer for both the chipmaking industry and Apple’s future product lines. With the ongoing developments, Arizona is set to become a critical hub for advanced semiconductor production.

For more details on TSMC’s expansion plans and their impact on global chip production, stay tuned for updates.

About TSMC

Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest independent semiconductor foundry. Known for its cutting-edge chip technology, TSMC manufactures processors used in products across industries, from smartphones to artificial intelligence applications. As the key supplier for companies like Apple, TSMC is at the forefront of the global semiconductor race.

Originally reported by Ed Hardy in Cult of Mac.