Taipei: C.C. Wei, chairman and CEO of Taiwan Semiconductor Manufacturing Co. (TSMC), announced that the company will expedite its expansion and technology upgrades in Arizona, while continuing substantial investments in Taiwan.
According to Focus Taiwan, Wei shared these updates during an investor conference, highlighting that TSMC's investment project in Arizona is progressing smoothly. The company has secured additional land near its existing compound to facilitate expansion efforts.
Wei emphasized TSMC's plan to introduce its advanced 2 nanometer process, which will begin commercial production in Taiwan in the fourth quarter of this year, to its U.S. operations. He also noted that the Arizona site is being developed into a megafab cluster to satisfy strong demand from clients in sectors such as smartphones, artificial intelligence, and high-performance computing.
TSMC is investing $65 billion in Arizona to create three advanced wafer fabrication facilities, with the first fab commencing production in 2024. Moreover, the chipmaker has committed an additional $100 billion investment over the next few years in Arizona for the construction of three more wafer fabs, two IC assembly plants, and a research and development center.
Wei indicated that until the two IC assembly plants are operational, TSMC is collaborating with an outsourced semiconductor assembly and test (OSAT) firm, which has initiated construction of a plant in Arizona. This partnership aims to enhance TSMC's service offerings to U.S. clients. While Wei did not name the partner, U.S.-based Amkor Technology Inc. announced in August its plans to establish an IC assembly and testing facility in Arizona, with production commencing in early 2028.
In October 2024, TSMC and Amkor declared their intent to deepen cooperation on 3D Chip-on-Wafer-on-Substrate (CoWoS) packaging and integrated fan-out (InFO) assembly services. Wei noted that demand for CoWoS services remains high, but TSMC is making strides in closing the supply-demand gap, especially amid the current AI surge.
Wei affirmed that TSMC's efforts to develop advanced wafer fabs and IC assembly plants in Taiwan will persist, bolstered by robust government support, despite its aggressive international expansion. Following the initiation of mass production for the 2nm process in Hsinchu and Kaohsiung later this year, production will accelerate in 2026, with the more advanced N2P and A16 processes expected to enter commercial production in the latter half of 2026.
Regarding TSMC's global footprint, Wei stated that the first fab in Kumamoto, Japan, employing specialty processes, has been in mass production since late 2024. Construction of a second facility is underway, with its production timeline to be determined based on market conditions. In Dresden, Germany, the construction of another fab using specialty processes is progressing well, with TSMC planning to assess client demand and market trends to establish a production schedule.