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TSMC finishes construction of second chip factory ahead of schedule

17 | 04 | 2025

Taiwan Semiconductor Manufacturing Co. completed construction of its second fab at its north Phoenix campus ahead of schedule to meet AI-related chip demand from customers, the company’s top executive said on an April 17 earnings call.

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TSMC CEO C.C. Wei said the company is “working on speeding up the volume production schedule” for its second fab, which will utilize 3-nanometer process technologies.

Wei did not disclose when production would be underway at TSMC’s second fab. TSMC previously planned to begin production at its second fab in 2028.

In addition, TSMC plans to break ground on its third fab — which will utilize 2-nanometer and A16 process technologies — later this year, depending upon permit approval, Wei said, adding the company will provide an update on progress in the coming quarters.

“We talked with the U.S. government to ask for their help in getting the necessary permits so we can start the (third) fab,” Wei said. “And as a result, I would expect around 30% of our 2-nanometer capacity will be in Arizona. “

Construction and production schedules for the company’s future fabs in north Phoenix will be based on customer demand, he added.

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