As part of the company’s fast-tracked expansion in the US, TSMC is said to be looking to compress construction into just two years, with the supply chain anticipating an even faster timeline to meet customer demand and to be able to better navigate US tariffs.
According to some analysts, TSMC is looking to raise wafer prices by another 3–5% in 2026 to offset rising construction costs, with price hikes at US fabs potentially exceeding 10%.
TSMC’s first Arizona fab, which started 4nm production at the end of 2024, has reportedly delivered its first batch of chips for major clients including Apple, NVIDIA, and AMD. Meanwhile, construction on the second Arizona facility got underway ahead of schedule in April 2025.
According to TSMC’s Chairman C.C. Wei while the first Arizona fab is focused on 4nm production, the second will advance to 3nm. Wei said that the company’s third and fourth fabs will look to develop cutting-edge nodes like N2 and A16.
However, due to the vast scale of the sites, it’s likely that only parts of TSMC’s planned facilities may be completed and operational before 2029.
TSMC’s first advanced packaging plant in Arizona (AP1) is focused on SoIC (System-on-Integrated-Chips) and is set to break ground by Q3 2026 - meaning that CoWoS packaging will still rely on facilities in Taiwan.
Reports suggest that TSMC has yet to confirm where it will be building two advanced packaging plants in the US and while the company does have significant land holdings in Arizona, which is intended for six fabs, the two advanced packaging plants and one R&D centre that are set to be built will likely need separate sites.
NVIDIA had confirmed its 4nm chips started production at TSMC’s Arizona plant in January, but these chips still need to be shipped back to Taiwan for advanced packaging.
