TSMC Accelerates Timeline for Advanced Chip Production in Arizona
With new pressure from the U.S. government to increase semiconductor production in the country for protection against geopolitical risks, TSMC decided to advance the U.S. operation, which means that the facility in Arizona will now introduce high-end process nodes like 2nm and A16 much earlier than was originally planned.
Updating the Timeline for a 2nm A16 Node
According to a report from the Taiwan Economic Daily, TSMC's new Fab 3 in Arizona is expected to kick off 2nm and A16 (1.6nm) node chip production in 2027. This is a full year ahead of the earlier schedule, making U.S. production just a year behind Taiwan's plan for these advanced technologies.
- Current Arizona Production: TSMC is currently mass-producing 4nm chips and installing 3nm production lines expected to begin by the end of this year.
- Taiwan Timeline: In comparison, TSMC is scheduled to begin 2nm production in Taiwan during the next quarter, with the A16 node set for the second half of 2026.
Driving Factors and U.S. Chip Demand
The U.S. administration's interest in a robust domestic chip supply chain is probably affecting this acceleration; in fact, Commerce Secretary Howard Lutnick has reportedly demanded that TSMC attempt to produce 50% of its total chip capacity in America.
With an anticipated six fabs in Arizona, TSMC is expected to supply at least 30% of the total chip demand in the U.S. by next year. This additional investment means TSMC is more seriously moving to diversify its supply chain and support "Made in USA" objectives of key partners such as NVIDIA and Apple.
