Taiwan chipmaker TSMC said on July 20 that it expects multi-year demand for AI chips and is adding US$100 billion to its Arizona expansion, bringing its total planned investment there to US$265 billion.

The expansion builds on TSMC’s Phoenix project, which had already grown to six fabs, two advanced packaging facilities, and an R&D center.

The first plant began producing 4-nanometer chips in early 2025, while later fabs are set for 3-nanometer production in 2027 and 2-nanometer production in 2029.

CFO Wendell Huang said the first Arizona fab is achieving yields “as good as” TSMC’s flagship fab in Taiwan.

He added that the second fab will soon start installing equipment, while the third is under construction.

Huang also cited constraints such as a shortage of construction workers and limited infrastructure.

Huang said TSMC would not rule out issuing bonds if market conditions are favourable.

🔗 Source: Reuters

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