Apple Supplier TSMC Breaks Ground on Third Arizona Chip Plant

U.S. Secretary of Commerce Howard Lutnick was in Phoenix, Arizona today, visiting TSMC's semiconductor plant where the company just broke ground on its third factory. The visit throws a spotlight on the major push to bring more chip manufacturing stateside, with TSMC's Arizona site being crucial for tech giants like Apple.

TSMC, the world's leading contract chipmaker, is investing $100 billion over the next four years to bolster its Arizona campus, which already includes two factories. The first began mass production late last year, and the second is set for pilot production in 2026, focusing on 3-nanometer chips. This newest factory aims to produce TSMC's cutting-edge 2-nanometer chips, and even more advanced technology down the line, targeting production before 2030. It represents a major scaling-up from the company's original $12 billion Arizona commitment made back in 2020, which itself had already swelled to $65 billion by 2022.




The overall investment promises a significant economic boost, too. Projections point to 40,000 construction jobs over the next four years, alongside tens of thousands of high-paying tech roles. Looking further out, officials estimate the ripple effect could drive over $200 billion in related economic activity across Arizona over the next decade. TSMC's Arizona plants are critical for Apple, its first and largest customer, supplying chips for iPhones, iPads, and Macs.

Lutnick highlighted the broader significance of the project, stating, "We are at TSMC Arizona to celebrate the return of American manufacturing. President Trump's bold leadership and clear direction are driving companies and jobs back to this country at a record pace."

TSMC Chairman and CEO Dr. C.C. Wei emphasized the company's commitment, saying, "We were delighted to welcome U.S. Secretary of Commerce Howard Lutnick to TSMC Arizona, the largest single foreign direct investment in U.S. history, and showcase the progress of our operation as he commemorates the first 100 days of the White House administration. As part of our commitment to support the needs of America's leading innovators in smartphones, HPC and AI, we recently broke ground on our third fab, which will introduce more advanced semiconductor capacity to the United States. We are grateful for the Secretary's commitment to supporting the advanced semiconductor manufacturing ecosystem."

Apple CEO Tim Cook voiced strong support, noting, "We're proud to support the high-skilled American jobs of tomorrow. As TSMC Arizona's first and largest customer, we're excited for the future of American innovation and the incredible opportunities it will create."


The expansion aligns with Apple's $500 billion pledge to grow U.S. manufacturing over the next four years. TSMC's Arizona facilities are expected to produce advanced chips for Apple's A-series and M-series processors, enhancing on-device AI and performance for future devices.

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