TSMC Begins Building Third Chip Factory in Arizona

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s top chipmaker, has started construction on its third factory in Arizona. This move is part of TSMC’s massive $100 billion investment to expand its presence in the U.S.

The first factory is already making chips at full scale, while the second one is close to starting production. The third and second plants will use TSMC’s latest and most powerful technologies, known as N2 and A16.

This expansion comes as former U.S. President Donald Trump’s tariff policies push companies to bring manufacturing back to the U.S. Interestingly, U.S. Commerce Secretary Lutnick said TSMC made this huge investment without relying on government subsidies. He credited the tariffs for helping bring jobs and factories back to American soil.

TSMC to Hike U.S. Chipmaking Prices by 30%

TSMC plans to increase chip production prices in the U.S. by 30% due to significantly higher costs compared to Taiwan—particularly at its Arizona facility. This move highlights the cost challenges of domestic chipmaking and could lead to pricier electronics.