Four new TSMC chip factories may be coming to Arizona

PHOENIX (AZFamily/AP) — Arizona’s chip city may be getting four new neighbors. TSMC says it could build four more chip plants in the state as part of a huge new U.S. investment.

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Taiwan Semiconductor Manufacturing Co. (TSMC) announced Thursday it plans to spend an extra $100 billion to grow its U.S. business.

The company says that money will likely help add four new fabrication plants in Arizona, which would make some of the world’s most advanced computer chips, 2-nanometer and smaller.

Those new factories would be added to TSMC’s big Arizona project in the North Valley. The company has already announced a $165 billion expansion that includes six chip plants, two advanced-packaging facilities, and a research and development center. The site is south of Loop 303 and west of Interstate 17.

Gov. Katie Hobbs called the investment a “game changer” for Arizona.

“This is huge news for Arizona. TSMC is investing another $100B in our state, bringing their total commitment to $265B. This is a game-changer that cements AZ as the global epicenter of semiconductor manufacturing & innovation,” the governor posted on X.

Mayor Kate Gallego described the deal as “incredible” and said it cements Phoenix “as the heart of America’s technology manufacturing economy.”

Phoenix councilwoman Ann O’Brien, who represents TSMC Arizona, also released the following statement about the new investment:

“TSMC’s additional $100 billion investment is another defining moment for Phoenix, bringing the company’s total Arizona commitment to an extraordinary $265 billion. As the councilwoman representing TSMC Arizona and chair of the City’s Economic Development Subcommittee, I’m proud that North Phoenix continues to lead one of the most important manufacturing and innovation hubs in the world.

This investment not only strengthens TSMC’s campus, it also expands a growing ecosystem of suppliers, creates high-quality jobs, and reinforces Arizona’s position at the forefront of advanced semiconductor manufacturing.

Semiconductors power everything from artificial intelligence and medical devices to aerospace and national defense. Expanding domestic chip production strengthens America’s economy, supply chain, and national security, and Phoenix is proud to play a central role.

Under Mayor Kate Gallego’s leadership, Phoenix has worked intentionally to create an environment where global companies can succeed through strategic infrastructure investments, workforce partnerships, and a commitment to innovation. TSMC’s continued confidence in our community affirms that vision.”

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All together, the company’s total promised investment in U.S. chipmaking now looks like roughly $265 billion.

TSMC makes chips used by big-name companies like Nvidia and Apple. The company says the big push is happening because more and more people and businesses want AI, and AI needs powerful computer chips.

The extra $100 billion is meant to “support the strong multiyear demand from our leading U.S. customers,” said C.C. Wei, TSMC’s chairman and CEO, during the company’s earnings call.

TSMC also said it plans to spend even more money this year to build and upgrade equipment. It raised its budget to $60 billion to $64 billion, up from its earlier estimate of $52 billion to $56 billion.

AI-related demand globally continues to be “extremely robust,” Wei said, as the “AI megatrend continues to drive the need for more and more computation.”

“I believe from this day on, all the way to probably 2029, 2030, the demand is very strong,” he said.

TSMC on Thursday reported a record 706.6 billion new Taiwan dollars ($22 billion) in net profit for the April-June quarter, up 77% from a year earlier and better than what analysts had expected. Revenue was up 36% year-on-year during the quarter, to 1.27 trillion new Taiwan dollars ($39 billion).

Wei said TSMC now expects its annual 2026 revenue growth to be slightly above 40% year-on-year, up from its previous forecast of over 30%.

TSMC’s ramped-up investment plans are “essential to support (its) long-term growth” and to keep up with demand, said William Li, a senior analyst in semiconductors at Counterpoint Research.

The Associated Press contributed to this report.

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