TSMC (Taiwan Semiconductor Manufacturing Company) is accelerating its expansion in Arizona, with plans to begin constructing its third semiconductor fab by mid-2025, a full year earlier than initially planned. This new fab will be part of the company’s broader efforts to increase its presence in the United States, which is also considering a new CoWoS (Chip on Wafer on Substrate) advanced packaging plant in the country. These developments are a response to growing concerns about foreign control over the global semiconductor industry.

The company has announced that the groundbreaking ceremony for the third fab could take place as early as June 2025, with senior US officials expected to attend. TSMC is also in talks to potentially establish a CoWoS advanced packaging plant in the US, marking a major shift in its production strategy. TSMC CEO, C.C. Wei, recently discussed these plans with executives from Arizona’s semiconductor sector following the company’s board meeting on US soil—the first time in its 37-year history that TSMC has hosted such a meeting in the United States.

TSMC’s second fab in Arizona is already under construction, with the main fab building completed. Cleanroom installations are currently underway, and equipment is expected to start moving in by the end of Q1 2026. The company anticipates risk production to begin by the end of 2026.

These moves are part of TSMC's broader strategy to establish a stronger foothold in the United States amid geopolitical tensions.

The Trump administration has voiced concerns over Taiwan's dominance in the semiconductor industry, with President Trump stating that "Taiwan took our chip business away" and expressing a desire to "bring that business back" to the US. The White House has also raised concerns about foreign entities having control over semiconductor firms like Intel, further fueling TSMC's decision to expand its operations in the US.

This expansion is particularly important as TSMC's involvement in advanced packaging and other semiconductor technologies may help the US maintain its competitiveness in the global tech landscape. Furthermore, recent reports suggest that TSMC could potentially provide much-needed assistance to Intel, which has faced significant challenges in keeping up with the demands of the rapidly evolving chip market. The Trump administration’s strategy, however, is to proceed with caution, wary of allowing foreign entities to control semiconductor businesses on American soil.

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Originally reported by Antony Garreffa in Tweaktown.

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