Taiwan Semiconductor Manufacturing Co. plans to begin installing chipmaking equipment at its second Arizona factory around the third quarter of 2026, with 3-nanometer production targeted for 2027, Nikkei reported, citing people familiar with the matter.
The revised schedule represents an acceleration of roughly a year from previous plans, which had pegged the facility for a 2028 launch. TSMC Chairman C.C. Wei has signaled intentions to bring U.S. production forward by several quarters, though the company faces significant execution hurdles in translating that ambition into reality.
Equipment installation marks just the beginning of a lengthy qualification process. Advanced chip production typically requires up to a year after tool installation to validate manufacturing lines, with 3nm fabrication involving more than 1,000 individual process steps that must be transferred and tested at new facilities.
TSMC’s Arizona buildout—now projected at $165 billion across six plants, two packaging facilities, and a research center—remains its most ambitious overseas venture. The first fab began producing 4nm chips earlier this year for Apple and Nvidia.
However, cost pressures persist. U.S.-manufactured wafers are expected to carry premiums exceeding 10% compared with Taiwan-made alternatives, while construction expenses at the Arizona site run four to five times higher than equivalent facilities in Taiwan.
