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Saturday, March 8, 2025

Trump announces $100 billion TSMC expansion plan in Arizona

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Fernando Garcia Executive Vice President, International Trade & Investment | Arizona Commerce Authority

Fernando Garcia Executive Vice President, International Trade & Investment | Arizona Commerce Authority

President Trump and TSMC Chairman C.C. Wei have announced a significant expansion of TSMC's semiconductor operations in Arizona, committing an additional $100 billion investment. This development will see the construction of three more semiconductor fabrication plants, two advanced packaging facilities, and a major research and development center. These additions are set to increase the number of jobs significantly.

TSMC's initial venture into Arizona began with the announcement of its first fab in May 2020. Since then, TSMC has established three chip-making fabs, representing a $65 billion investment and creating 6,000 jobs. With this latest announcement, TSMC's total investment in Arizona rises to $165 billion.

The company's advancements include producing 4-nanometer chips for U.S. customers in January and working on cutting-edge 2nm process technology at their second fab under construction. The third fab will also focus on 2nm or more advanced processes.

Arizona Governor Katie Hobbs commented on the significance of this development: "TSMC’s historic announcement cements Arizona as the epicenter of advanced chip manufacturing and innovation in America." Senator Mark Kelly added that it strengthens Arizona's position as a global hub for microchip production while reducing reliance on foreign supply chains.

U.S. Representative Abe Hamadeh highlighted the focus on employing veterans: "They are clearly committed to President Trump's American First Manufacturing agenda." Mayor Kate Gallego emphasized the impact on national security: "This investment further strengthens domestic chip manufacturing."

Sandra Watson from the Arizona Commerce Authority expressed gratitude for TSMC's commitment: “We are immensely grateful to TSMC for their historic investment.” Danny Seiden from the Arizona Chamber of Commerce & Industry noted that such investments bolster both economic strength and national security.

Chris Camacho from Greater Phoenix Economic Council praised how this commitment enhances Phoenix’s role as an innovation leader. Deirdre Hanford from Natcast congratulated Arizona on being chosen for significant prototyping facilities as part of CHIPS for America initiatives.

These expansions underscore a collaborative effort involving federal, state, university, and local partners aiming to solidify Arizona's place at the forefront of semiconductor industry growth within the United States.

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