TSMC Expands in America: Groundbreaking Third Chip Plant in Arizona Marks Major Milestone

TSMC Breaks Ground on Third Plant in Arizona

Taiwan Semiconductor Manufacturing Company (TSMC) has started construction on a third chip fabrication plant in Arizona. This move comes as part of a $100 billion investment over the next four years, with significant support from the CHIPS Act funding signed into law in 2022. The new plant is expected to create 40,000 construction jobs and tens of thousands of technology jobs.

The facility will produce processors for various companies, including Nvidia, AMD, and Apple. However, due to Taiwanese laws, these plants can only manufacture older processors, which must be sent back to Taiwan for finishing before being re-imported into the U.S., subject to tariffs.

While not confirmed, reports suggest that the plant may also produce the S9 System-in-Package processor used in the Apple Watch Series 9 from 2023. The Arizona plants are currently producing 4-nanometer processors, such as the A16 chip found in the iPhone 14 and iPhone 15 base models.

TSMC has faced challenges during its expansion in Arizona, including worker safety concerns, accusations of reduced pay, and the use of non-union workers. There have also been issues with construction delays and a lack of skilled local staff. Despite these hurdles, TSMC remains committed to its long-term plans in the region.