TSMC, the world’s largest chipmaker, has brought forward the production schedule for the advanced semiconductor factories it is building in Arizona, USA. Following its second-quarter financial results announcement, the company announced that it has accelerated its production schedule quarter-over-quarter due to strong demand from US customers.
TSMC completes US semiconductor factories months ahead of expectations
TSMC CEO C.C. Wei announced that the first factory in Arizona is fully operational, construction is complete for the second, and the groundbreaking for the third facility took place last April. TSMC plans to build a total of six advanced wafer fabrication facilities, two advanced packaging factories, and a research and development center. These facilities will significantly increase its production capacity in the US.
The company’s first factory in Arizona (Fab 21 Phase 1) began producing 4nm chips last year. TSMC stated that the throughput rates on this production line are on par with facilities in Taiwan. Production of the A16 Bionic and S9 SiP chips used in Apple’s products such as the iPhone 14 Pro, iPhone 15, and Apple Watch Ultra 2 continues at this factory. Following small-scale test production, mass production for these chips has been accelerated.
TSMC is preparing to begin production of 3nm chips at its second factory in Arizona (Fab 21 Phase 2) several quarters earlier than planned. Production is expected to begin in late 2025 or early 2026.
Construction of the third factory (Fab 21 Phase 3) has also begun, where it will produce 2nm and A16 (1.6nm equivalent) processors. However, production of these chips in the US will begin later this decade. The first smartphones with 2nm chips are planned to be launched in late 2025 or early 2026, using processors manufactured in Taiwan.
TSMC’s acceleration of its production schedule is driven not only by customer demand but also by political developments. Former US President Donald Trump’s plan to impose a 25% tariff on semiconductor imports makes domestically produced chips more strategic.
For example, if an iPhone manufactured in China or India is imported into the US, Apple may be required to pay separate tariffs on both the device and the foreign-made chips within it. This increases pressure on major manufacturers like Apple to use US-made chips.
TSMC had a strong quarter not only on production but also on its financials. In the second quarter of 2025, the company generated revenue of 933.80 billion Taiwan dollars ($31.7 billion) and reported net income of 398.27 billion Taiwan dollars ($13.5 billion).
Net profit increased by 61% year-over-year. This performance enabled TSMC’s market capitalization to surpass $1 trillion for the first time in its history. The company’s shares are trading at $240.50 on the Robinhood platform, up 4.2 percent, and are close to their 52-week high of $248.28. The stock has gained 19.3 percent since the beginning of 2025.
