Taiwan Semiconductor Manufacturing Co. has started initial production at its Arizona facility ahead of schedule, while simultaneously expanding its advanced packaging capabilities in Taiwan to meet surging artificial intelligence chip demand.
U.S. Commerce Secretary Gina Raimondo said the company began 4-nanometer chip production in Arizona in recent weeks, marking an acceleration of TSMC’s original timeline. The $40 billion facility targets 20,000 wafers per month capacity by year-end, with AMD and Apple among its first customers.
The world’s largest contract chipmaker is also reinforcing its technological edge in Taiwan. The company plans to construct two additional Chip-on-Wafer-on-Substrate (CoWoS) packaging plants in Chiayi, southern Taiwan, according to Commercial Times. These facilities will complement an existing advanced packaging plant scheduled to begin operations in late 2025.
TSMC’s expansion reflects its strategy to maintain Taiwan as its primary base for cutting-edge technology while building a U.S. presence. The company is developing 2-nanometer chip production facilities in Hsinchu and Kaohsiung, with the first plant targeting 2025 for mass production. Sources say TSMC is also securing land for future 1.4-nanometer chip manufacturing sites across Taiwan.
The capacity additions come as demand for advanced packaging technologies rises, driven by high-performance computing and AI applications.
