TSMC’s Arizona Fab Expansion: Speeding Up Amid Global Race for Chips

TSMC plans to begin importing and installing equipment at the Fab 21 Phase 2 site in Arizona by next summer. This is reported by Nikkei, citing sources familiar with the plan. If the timeline is confirmed, the company could launch mass production of chips using the N3 process technology (3-nanometer class) as early as 2027, several quarters earlier than previously expected.

According to Nikkei, equipment installation is scheduled for the third quarter of 2026 (July to September), with production set to begin in the 2027 calendar year. TSMC previously stated that construction of the Fab 21 Phase 2 building would be completed in 2025, followed by internal infrastructure work (engineering systems, climate system, etc.). Installation and setup of the equipment takes from hours to days depending on the type of machines, but the most complex lithography systems (including advanced DUV/EUV complexes) require significantly more time. In practice, it takes months to introduce the first “wave” of tools and adjust their joint operation, so even by 2027, production volumes of 3-nanometer chips will be limited.

In recent months, TSMC has been expediting its efforts to mitigate the global chip shortage by expanding its capacity beyond its traditional bases in Taiwan. This comes as companies like Samsung and Intel are increasing their investments in advanced semiconductor technologies and production facilities. Samsung has announced major investments in Texas, while Intel is pushing forward with its own new fabs in Ohio, aiming to challenge TSMC’s leading position in cutting-edge process technologies over the next few years.

The semiconductor industry continues to face unprecedented demand driven by technologies ranging from 5G and artificial intelligence to electric vehicles. Experts highlight the importance of geographic diversification in manufacturing to prevent potential disruptions and ensure a stable supply chain. As TSMC advances with its Arizona project, it symbolizes a significant shift in the global semiconductor landscape, with more manufacturers recognizing the strategic importance of having production capabilities close to key markets.