TSMC is finally making massive investments in the USA, with plans to open 12 plants in Arizona. Initially, plans called for the opening of 8 production sites. Despite higher construction and operating costs than in Taiwan, the company sees this as an imperative in order not to be shut out of US orders due to the new policy led by Donald Trump.
Finally, 12 factories planned by TSMC in Arizona!
Massive investments: up to $165 billion!
Trump’s new policy on tariffs and other tax breaks seems to be encouraging the establishment of industrial sites in America. As a result, the Taiwanese semiconductor company is investing massively in the United States, to the tune of $165 billion. In 2026 alone, investments will total between $52 and $56 billion. It has to be said, too, that costs are skyrocketing, and 2nm production sites are far more expensive than 3nm ones, but they will be more affordable than the 1.4nm to come.
While initial plans involved the opening of eight factories: 6 fabs and 2 for packaging, this figure has now been revised upwards. We’re now talking about 8 fabs and 4 advanced packaging sites. This massive expansion is also bringing other companies into TSMC’s fold. These include Mega Union, Sunlit Chemical, Chang Chun Group and others. It’s enough to create a sort of mini Hsinchu Science Park in Arizona. It also generates a surge in visa applications in the USA, and the resulting recruitment.
Factories less profitable than in Taiwan!
From a profitability point of view, OEMs and companies following TSMC in Arizona indicate that these production sites will be less profitable than in Taiwan. Stories of two to three times higher operating and construction costs in the USA are cited. Investments will therefore take longer to pay for themselves. What’s more, environmental standards and wage and union conditions mean that operating costs will be higher than on the island.
Similarly, in terms of construction, the Taiwanese cite longer construction sites for procedural reasons, making them less efficient than in Taiwan. Nevertheless, the reason why all these people are setting up shop in America is so as not to be excluded from future American orders from TSMC. They want to be there to get their piece of the pie.
