TSMC gets $6.6 billion in CHIPS funding for third Arizona fab

The three fabs, which will be situated near Phoenix, will each manufacture different types of chips, according to TSMC’s statement. The first, which is set to begin production in the first half of 2025, will produce chips using the company’s 4nm process technology. The second, slated to open in 2028, will produce 2nm and 3nm chips, while the third will cover 2nm and even more advanced chip designs.

TSMC’s US production has faced delays in getting up and running. The first Arizona foundry, which was announced in 2020, was set to open later this year and is now on track to begin production in the first half of 2025. The company announced in January that the second foundry, originally slated for a 2026 opening, would also be delayed. TSMC said today that it aims to have its third fab in operation by 2030.

The third fab had long been discussed, according to Gartner vice president analyst Bob Johnson, who added that TSMC is unlikely to even break ground on the project for another three or four years.