TSMC Accelerates 2nm Chip Production in Arizona, Expands US Operations

TSMC moves up 2nm production plans in Arizona -- CEO also hints at further site expansion beyond $165 billion commitment

Taiwan Semiconductor Manufacturing Co. (TSMC) CEO C.C. Wei has said that it's moving up its 2nm production plans in Arizona due to continued strong AI demand from its American customers. He also mentioned that the company is close to acquiring another massive property close to its latest fab in the U.S., hinting at a possible further expansion outside of its current $165 billion commitment, according to Nikkei Asia. "We are preparing to upgrade our technologies faster to N2 and more advanced processes in Arizona, given the strong AI-related demand from our customers," Wei said during a company earnings call. He also commented on the land acquisition, "Our plan will enable TSMC to scale up to an independent Gigafab cluster in Arizona to support the needs of our leading-edge customers in smartphone, AI, and HPC applications." TSMC has previously slowed its global plans because demand wasn't there, but it has accelerated the development of its Arizona fabs because of robust demand from its U.S.-based clients. Construction of its N2 fabs at the site just started in April of this year, but it has already accelerated work on the site. The company initially expected chip production to begin by 2030, but this announcement will likely bring it up by around a year, although the company hasn't mentioned a specific timeline yet. Aside from that, the planned land acquisition hints at TSMC's plan to turn its Arizona fab into a self-contained semiconductor manufacturing facility that can output 100,000 12-inch wafers monthly. This means having on-site packaging and testing alongside the fabs, with nearby supply chain partners and talent pipeline. In fact, the company has already begun working on developing future workers with its Arizona internship program, which has grown from 130 to 200 slots. The company is confident about the demand outlook for the latest cutting-edge chips, despite the growing uncertainty in the global semiconductor supply chain caused by the U.S.-China trade war. The multitude of announced deals and partnerships to build AI data centers means there's a strong, multi-year demand for chips from Nvidia, AMD, and Broadcom. There's also demand from the consumer side, especially as Apple, another major TSMC customer, has just announced the arrival of its 5th-generation Apple Silicon.

TSMC US fab getting advanced chip tech sooner than thought

CEO C.C. Wei cites strong demand for AI products. Intel may also be a factor TSMC is accelerating the rollout of advanced process nodes at its Arizona fabs to meet growing demand for American-made AI products. The Taiwanese foundry giant currently produces chips based on its older N4 (4-nanometer) process technology at its Fab 21 site in Arizona, which began volume production earlier this year, making chips for Apple and Nvidia. TSMC's next fab, the second of six planned for its Arizona manufacturing campus, will bring its N3 node to the US in 2028. Across the Pacific, TSMC is preparing to ramp production of its N2 node, but it wasn't expected to find its way into the foundry operator's US fabs until the end of the decade. Now, its plans have apparently changed. During TSMC's Q3 earnings call this week, CEO C.C. Wei revealed the company would accelerate this timeline. "We are preparing to upgrade our technologies faster ... to more advanced process technologies in Arizona, given the strong AI-related demand from our customers," he said. Whether that means TSMC's second fab will skip N3 and jump straight to N2 or its yet unreleased A16 process, the exec didn't say. El Reg reached out to TSMC for clarification and we'll let you know if we hear anything back. Since first announcing its US fab expansion in 2020, TSMC has reserved its most sophisticated process technology for its Taiwanese plants. However, since announcing a $100 billion expansion of its fab footprint in an appearance alongside US President Trump early this year, the company has seen a wave of interest from American chipmakers eager to build their parts domestically. Apple, Nvidia, and AMD are all producing or plan to produce parts at TSMC's first Arizona chip plant. This surge in demand has no doubt been influenced by the persistent threat of tariffs on foreign-made electronics and semiconductors. Another possible factor is the imminent availability of Intel's 2-nanometer class 18A process technology, which will power the x86 giant's Panther Lake and Clearwater Forest Xeons. The success of these products could herald a shift in demand toward the rival foundry. Intel's Foundry division has been searching for a hero customer for some time, initially targeting 18A as its breakout moment. The company has since refocused on its upcoming 14A node as its first mainstream foundry offering. While unproven, 18A features several elements not yet available on TSMC nodes, including the use of backside power delivery, which promises to boost transistor densities by a significant margin. Perhaps more important, Intel offers a 2nm class process that's made right here in the US-of-A today. ®

TSMC pushes 2 nm manufacturing ahead of schedule, fast-tracks Arizona buildout

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Something to look forward to: TSMC is moving faster than expected to bring its most advanced chip technology to market. The company confirmed that its N2 process node will enter volume production before the end of 2025, as it accelerates both its domestic rollout in Taiwan and a parallel push to deploy the same technology at its Arizona site. The N2 node introduces nanosheet-based gate-all-around transistors, replacing the FinFET architecture used since the 16-nanometer generation. Early yields have been strong, according to company executives, with mass production set to ramp up sharply through 2026. TSMC is also developing a next-step process known as N2P, expected in the second half of 2026, to deliver further efficiency gains. The 2-nanometer milestone coincides with record financial results for the third quarter. TSMC's revenue rose more than 40% from a year ago to $33.1 billion, powered by demand for AI accelerators and premium smartphone chips. Masthead and income statement graphs credit: App Economy Insights Advanced process technologies - spanning the N3, N5, and N7 families - made up nearly three-quarters of sales. Company leaders said capital spending will remain aggressive, totaling as much as $42 billion this year, with nearly three-quarters of that directed toward expanding leading-edge manufacturing capacity. TSMC's Arizona buildout is now central to those investments. The company has already begun producing chips using its N4 process at the first module of Fab 21 near Phoenix and will bring N3 online next. But in an earnings call this week, Chief Executive C.C. Wei said the company will "upgrade our technologies faster to N2 and more advanced processes in Arizona, given the strong AI-related demand from our customers." That admission marks a major acceleration - N2 production at Fab 21 had originally been expected near the end of the decade. The twin efforts mark a pivotal moment for the world's largest contract chipmaker as it seeks to meet the surge in global demand for high-performance processors used in AI and advanced computing. Construction of new modules for N2 and its successor, A16, is expected to begin later this year. When complete, about 30% of TSMC's output from 2 nm-class and more advanced nodes will be produced in the United States. The company's Arizona site is expected to evolve into a "GigaFab" cluster capable of turning out roughly 100,000 wafers a month, fully integrated with packaging, testing, and local supplier networks. The shift comes during renewed efforts by US policymakers to secure domestic chip production capacity and lessen dependence on Asian foundries. Wei underscored that context, describing the Arizona expansion as a step toward creating "an independent, leading-edge semiconductor manufacturing cluster" in the United States. The company is exploring additional land acquisitions around its existing campus to support further expansion beyond its original $165 billion US investment commitment.

TSMC's Q3 Earnings Mark the Start of 2nm Chip Production

The company confirmed that 2nm production (N2) will begin this quarter, with the N2P node and A16 process scheduled for 2026. The world's largest chipmaker is quietly laying the foundation for the next wave of physical AI. TSMC is setting up new fabs in Arizona, Japan, and Germany and anchoring its 2-nanometre future in Taiwan. All this, while balancing geopolitics, capacity, and the unrelenting demand for chips that power everything from data centres to smartphones. As revenue rises and demand outpaces supply, the company is expanding globally while keeping its most advanced technology rooted at home. In its Q3 earnings report today, TSMC announced a net profit of NT$452.3 billion (~$14.1 billion) for the quarter ending in September 2025. This marked a 39% year-on-year increase, as sustained AI demand boosted orders for its advanced chips. Revenue rose to $33.1 billion, surpassing guidance, driv

TSMC Announces the Intent to Rapidly Expand U.S. Operations, Introducing Cutting-Edge 2nm Chips With New Facilities in Arizona

TSMC plans to scale up its operations in America at a rapid pace, as announced during the recent earnings call, including the acquisition of a second piece of land to expand the Arizona fabs. The Taiwan giant is currently witnessing extraordinary demand for its chip production in the US, mainly driven by AI and how clients like NVIDIA, AMD, and Apple are pursuing manufacturing in America. TSMC is the primary supplier of cutting-edge semiconductors in the US, with the Arizona facilities mass-producing the 4nm process at the time of reporting. However, at the Q3 earnings call, TSMC's CEO expressed the intention to bring N2 and beyond technologies to the US, and also announced plans to secure a second piece of land to expand the Arizona facilities. We are making tangible progress and executing well to our plan. In addition, we are preparing to upgrade our technologies faster to N2 and more advanced process technologies in Arizona, given the strong AI related demand from our customers. Furthermore, we are close to securing a second large piece of land nearby to support our current expansion plans and provide more flexibility in response to the very strong multiyear AI related demand. It seems like TSMC is now fully committed to expanding its production facilities in the US to cater to the massive demand coming their way. More importantly, C.C. Wei has expressed TSMC's intentions to bring N2 in Arizona as well, which shows that the intent to shift cutting-edge chip production to America is defintely there, and based on the timeline we are seeing, Taiwan might just be a few years ahead of the US in terms of the technology being produced, and the gap will narrow done once N2 is in production in Arizona. The expansion of the Arizona facility from the existing six fabs clearly shows that the ability to produce high-end semiconductors in the US is there. TSMC will become the second entity, after Intel, to introduce a 2nm node size in America, and this could happen as early as H2 2026. There are also plans to scale up to A16 (1.6nm) production in Arizona, which is driven by the fact that US clients account for a large share of TSMC's revenue. Therefore, the transition of production from the East to the West is a necessary step for the firm. It will be interesting to see whether TSMC manages to meet the expectations of US clients in terms of scaling up operations in the US, but by the looks of it, the Taiwan giant is fully committed to the 'Made in USA' narrative.