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TSMC to Accelerate Production of Advanced Chips in the U.S. Sooner Than Expected

Posted on 28 March 2025

TSMC has made significant progress in establishing its manufacturing capabilities in the United States, with the company’s initial Arizona facility completed after five years. Interestingly, TSMC has indicated that future fabs in the U.S. will require only two years or less for construction and activation.

This accelerated timeline is crucial as it positions TSMC’s U.S. operations to potentially rival its Taiwanese factories, which are known for producing chips using the latest advanced process nodes. Currently, the Arizona facility focuses on older chip nodes.

As of September, it began producing the A16 Bionic application processor used in Apple’s iPhone 15. This chip is fabricated on TSMC’s enhanced 5nm node, referred to as 4nm.

In contrast, TSMC’s Taiwanese plants are already manufacturing the more advanced A18 and A18 Pro chipsets for the upcoming iPhone 16 series, which utilize the second-generation 3nm node (N3E). The difference between these nodes is significant, as smaller process nodes allow for greater transistor density, resulting in more powerful and energy-efficient chips.

Looking ahead, TSMC is set to activate a new fab in the U.S. by 2028 for 3nm chips and plans to manufacture 2nm chips in the U.S. before 2030. This advance is noteworthy as TSMC aims to produce 2nm on a large scale in Taiwan later this year.

If successful, U.S. fabs could align more closely with the cutting-edge 1.4nm process node anticipated for Taiwan between 2027 and 2030. This expansion is particularly important for Apple, as it mitigates risks associated with geopolitical tensions, particularly concerning Taiwan’s safety and TSMC’s operations.

In contrast, former Intel CEO Pat Gelsinger has expressed skepticism about the U.S. achieving semiconductor production leadership, emphasizing that essential research and development efforts remain focused in Taiwan.

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