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TSMC’s Third Arizona Fab: Groundbreaking, Technology and Timeline

TSMC’s third Phoenix fab broke ground in April 2025 and reached its topping-out milestone in May 2026. The facility is planned for advanced process technologies, with volume production targeted by the end of the decade.
From TheFinanceBase Team2 min to read
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TSMC broke ground on its third semiconductor fab in Phoenix, Arizona, on April 29, 2025. The facility is planned for N2 and A16 process technologies, and TSMC targets volume production by the end of the decade. A later construction milestone—the May 5, 2026 topping-out ceremony—shows the building’s structure has advanced, but it does not change the company’s stated production target.

When did TSMC break ground on its third Arizona fab?

The U.S. Department of Commerce recorded the groundbreaking on April 29, 2025, during Secretary of Commerce Howard Lutnick’s visit to TSMC’s Phoenix facility. The announcement concerned the third fab at the Arizona site, part of TSMC’s planned expansion there. U.S. Department of Commerce, April 29, 2025.

What will Fab 3 produce?

TSMC’s Arizona project page identifies the third fab as planned for N2 and A16 process technologies. Those labels refer to advanced semiconductor manufacturing process generations, not the dimensions of every feature on a chip. The company’s page states that volume production is targeted by the end of the decade; it does not give a specific production-start date. TSMC Arizona project page.

How far has construction progressed?

The City of Phoenix reported a topping-out ceremony on May 5, 2026. Topping out marks installation of a building’s final and highest structural beam, an important construction milestone but not the completion of the facility or the start of chip production. Phoenix said the facility will run 2-nanometer process technology. City of Phoenix, May 5, 2026.

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How large is TSMC’s Arizona investment?

The Arizona three-fab plan was announced in 2024 alongside up to $6.6 billion in proposed direct CHIPS Act funding and an expectation of approximately 6,000 direct high-tech jobs. The funding figure is a proposed federal award, not the total cost of the Arizona project or a statement of private investment. The cited announcement does not establish the project’s total private investment. U.S. Department of Commerce and TSMC, 2024.

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Why the project matters to TSMC and the U.S. chip supply chain

TSMC’s 2025 annual report says construction of a third Arizona facility began during 2025. For context on the scale and strategic direction of the company, it reports 15.0 million 12-inch-equivalent wafer shipments in 2025 and says advanced technologies generated 74% of total wafer revenue that year. These are company-wide results, not production or revenue figures for the Arizona fabs. TSMC 2025 annual report.

Arizona is one part of TSMC’s overseas production expansion. The company says it operates six 12-inch GIGAFAB facilities, while its facilities page also describes expansion of overseas production bases, including Arizona. The GIGAFAB count refers to facilities operated by TSMC; it is not a count of Arizona fabs. TSMC facilities.

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