TSMC Reportedly Planning 12 Fabs and Four Packaging Facilities in Arizona as Part of US Expansion

Taiwan Semiconductor Manufacturing Company is reportedly planning to build 12 fabrication plants and four packaging facilities in Arizona as part of an expanded US manufacturing commitment linked to Taiwan's broader $500 billion investment pledge in the United States, Tom's Hardware reported, citing new details on the scope of the plan. If executed, the build-out would represent a dramatic expansion of TSMC's Arizona footprint beyond the three fabs the company has previously announced. TSMC's first Arizona fab began producing chips in 2024, with subsequent phases under construction. A 12-fab campus would position Arizona as a major global semiconductor manufacturing hub, second only to TSMC's home base in Taiwan. The scale of the reported plan reflects both the strategic importance of domestic chip production to the US government and the enormous capital commitments being negotiated as part of bilateral trade and technology agreements between Washington and Taipei. The CHIPS and Science Act has provided financial incentives for domestic semiconductor investment, and TSMC has been its largest direct beneficiary. Packaging facilities -- which handle the final assembly and testing of chips after fabrication -- are an increasingly critical part of the semiconductor supply chain, particularly for advanced packaging techniques used in AI chips. Including four such facilities in the Arizona campus plan suggests an intent to create a vertically integrated manufacturing presence in the US. TSMC has not publicly confirmed the 12-fab figure. The company has been navigating labor cost and talent availability challenges at its Arizona facilities, which have required importing Taiwanese engineers to operate, drawing scrutiny from local unions.