TSMC is in a hurry to complete construction of its US manufacturing sites ahead of schedule

The world’s largest chip maker TSMC previously said it would spend $165 billion to build fabs in the U.S. capable of producing advanced semiconductors. Following the release of its second-quarter report, the company held a conference call to update its global manufacturing plans. In Arizona, TSMC is going to build six advanced silicon wafer fabs, two advanced chip packaging fabs and a research and development center.

TSMC CEO Cee-Xi Wei said the first and second fabs in Arizona have already been built, and construction of the third has already begun. The CEO said TSMC is seeing “strong interest” from US customers, which has led the company to accelerate its mass production schedule, shortening it by several quarters. He also said, “TSMC will continue to play a key and integral role in the success of our customers, remaining an important partner and part of the U.S. semiconductor industry ecosystem.”

TSMC will continue to play a key and integral role in the success of our customers by remaining an important partner and part of the U.S. semiconductor industry ecosystem.

With former President Donald Trump threatening to impose 25% duties on imported semiconductors, the taxes are likely to apply to devices containing chips manufactured outside the US. For example, Apple would have to pay a tax for every iPhone imported into the U.S. from China or India. In addition, Apple will also be taxed on the chips themselves if they are not made in the U.S.

The Arizona factory, which began producing 4nm chips last year, will continue to do so this year. What’s particularly impressive is that the yields for 4nm production in the U.S. are on par with TSMC’s Taiwan fabs. For example, this line could produce the following Apple chips:

• A16 Bionic – used in the iPhone 14 Pro, iPhone 14 Pro Max, iPhone 15 and iPhone 15 Plus. TSMC has reportedly started trial and small-scale production of these chips and is already ramping up mass production.
• S9 SiP (System in Package) – used in the Apple Watch Ultra 2, and possibly to be installed in an updated version of the HomePod mini, which could be released later this year.

A second factory in Arizona has already been built. This is where the company aims to start producing 3nm chips a few quarters earlier than planned due to high demand in the US. Mass production of 3nm could begin as early as late 2025 or early 2026.

The company is aiming to begin mass production of 3nm chips as early as late 2025 or early 2026.

“Looking ahead to the second half of 2025, we have not yet seen a change in customer behavior. However, we understand the risks and uncertainties associated with the potential impact of tariff policy, especially in the consumer and price-sensitive segments.”

In April of this year, TSMC began construction of a third fab in Arizona. It is at this site that 2nm and A16 chips (actually corresponding to the 1.6nm process) will be produced.

The first smartphones with a 2nm processor will appear later this year or early 2026, but they will be manufactured in factories in Taiwan. Production of 2nm and A16 chips in the U.S. won’t begin until the end of this decade at the earliest.

The first smartphones with 2nm processors will appear later this year or early 2026, but they’ll be made in fabs in Taiwan.

TSMC’s financial results for the second quarter of 2025:The company earned NT$933.8 billion (US$31.7 billion) in the second quarter. Net income totaled NT$398.27 billion (US$13.5 billion), up 61% year-on-year. In other words, it was another strong quarter for TSMC.

Last week, the company’s market value surpassed $1 trillion for the first time in history. In premarket trading on the Robinhood platform, TSMC shares were at $240.50, up 4.2%. The 52-week high is $248.28 and the low is $133.57. So the stock is already up 19.3% in 2025.

The story TSMC rushes to complete its U.S. manufacturing sites ahead of schedule was first published on ITZine.ru.