TSMC expands investments in the U.S. to $165 billion with new fabs and R&D center: A closer look

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On Monday, TSMC announced plans to invest $100 billion in expanding its U.S. manufacturing capacity. The funds will go toward three additional fabs, two advanced packaging plants, and a major R&D facility. We spoke with the company to learn more about its plans and some additional details.
The extra $100 billion investment adds to TSMC’s $65 billion commitment for its Fab 21 site near Phoenix, Arizona. This makes TSMC, the world’s largest contract chip manufacturer, one of the biggest foreign investors in the U.S. to date.
Given the titanic proportions of TSMC’s $165 billion investment, it’s warranted to see and understand where and how the funds are being used across TSMC’s various U.S. initiatives. Let’s take a look at how this fits in with TSMC’s overall strategy.
Although TSMC said it would invest an additional $100 billion in its U.S. operations, it has not disclosed specific details regarding the timing, locations, or technologies for its expanded U.S. investment. However, the company appears to have enough space to build new facilities at its Fab 21 site.
“We have not announced details on timing, locations, or specific technologies for our intended new investments yet,” Nina Kao, head of public relations at TSMC, told Tom’s Hardware. “We are committed to moving as fast as possible to meet our customers’ needs, and we expect to share more information as our plans are finalized.”
TSMC’s Fab 21 campus near Phoenix, Arizona, is around 1,100 acres in size (4.5 km^2), which is more than twice the size of Monaco or roughly equivalent to 630 football fields placed side by side. The company originally intended to build six fab modules (or phases) there, making the facility one of the largest semiconductor production sites in the world.
However, when TSMC finalized its CHIPS deal with the U.S. government last year, it outlined plans to build three Fab 21 phases by 2030. Phase one includes equipment to fabricate N5 and N4 process nodes, which are already in mass production. Phase two is set to become operational in 2028 with N3 capabilities. Then, phase three is set to introduce N2 and A16 process nodes by 2030.
The new announcement adds three more Fab 21 phases, two advanced packaging facilities, and an R&D center. TSMC hopes to build everything at its Fab 21 site, making it one of its major production hubs.
“We originally selected the site in Phoenix, Arizona, and purchased a piece of land that is bigger than 1100 acres because we would like to accommodate several operating fabs and support future expansion to scale for the economics,” Kao told us. “We will work closely with the City, the State, federal government and our local infrastructure and education partners to ensure that our expansion plans can be supported.”