TSMC has decided to build four more 2nm fabs in Arizona.

TSMC CEO CC Wei has announced plans to build at least four more semiconductor manufacturing plants and advanced packaging facilities in Arizona, USA. An additional $100 billion (approximately 16.2 trillion yen) is expected to be invested in the construction.

TSMC commits another $100 billion to Arizona for at least four more 2nm fabs — 2026 capex could hit $64 billion following another record quarterly earnings | Tom's Hardware

Arizona is the location chosen by Taiwan-based TSMC as its first advanced semiconductor manufacturing base in the United States. The company has already invested $165 billion (approximately 26.8 trillion yen) to build and operate several factories there. A new factory to manufacture cutting-edge semiconductors using a '2nm process or smaller' is planned for this site.

The factory is expected to have the capacity to produce approximately 20,000 2nm class wafers per month. TSMC did not disclose when it will invest the additional $100 billion.

This investment announcement follows a US-Taiwan trade agreement in which the US will lower tariffs on Taiwanese products to 15% in exchange for Taiwan investing $250 billion (approximately 40.6 trillion yen) in the US. The agreement reportedly includes a goal for TSMC to build 12 factories and 4 packaging facilities in the US. As of the time of writing, TSMC has built 6 factories and 2 packaging facilities in Arizona, and this investment will increase that number to 10.

The Arizona factory is used by American companies such as Apple and NVIDIA , and is reportedly performing well, with a yield rate 4 percentage points higher than that of the Taiwanese factory. However, there are also reports that production capacity has reached its limit, impacting customers. The newly constructed factory may help resolve these delays.

Rising AI demand pushes TSMC's production capacity to its limits; Google, NVIDIA, AMD, Tesla, and others are considering Samsung as an alternative partner - GIGAZINE

CEO Wei revealed plans to build 13 packaging plants in Taiwan over the next few years, dispelling concerns that expanding investment in the U.S. would come at the expense of investment in Taiwan.