Taiwan Semiconductor Manufacturing Company Limited (TSMC) is intensifying efforts to broaden its manufacturing presence in the United States, signaling a strategic move closer to key clients such as Nvidia Corporation and Apple Inc. This initiative also seeks to alleviate supply chain vulnerabilities linked to geopolitical tensions surrounding Taiwan.
Central to this expansion is Arizona, which is becoming the keystone in TSMC's U.S. infrastructure plans. According to recent reports, TSMC intends to invest tens of billions of dollars to develop multiple new semiconductor fabrication plants in the state. Once complete, these additions will elevate the number of TSMC facilities in Arizona to approximately a dozen.
This growth trajectory coincides notably with a newly established trade agreement between Taiwan and the previous U.S. administration. The deal notably reduces tariffs on Taiwanese imports to 15%, and includes ambitious plans for $250 billion in Taiwanese investments in the U.S. alongside credit guarantees of equal magnitude. Within this framework, TSMC's expansion is positioned around constructing a substantial "gigafab cluster" in Arizona, envisioned as the foundation of its American manufacturing ramp-up.
Regarding land acquisition, CEO C.C. Wei has indicated that TSMC has secured additional acreage beyond its initial 1,100-acre site. This original parcel was allocated for six semiconductor fabrication facilities, supplemented by two advanced packaging plants and a research and development center. The newly acquired 900 acres provide TSMC with greater flexibility to accommodate further growth and potential modifications to its development strategy.
TSMC has also expedited its project timelines in Arizona. Construction of the second fabrication plant has been advanced to commence in the latter half of 2027, while work on a third plant has experienced an acceleration. Concurrently, TSMC has initiated permitting proceedings for a fourth facility, reinforcing the urgency and scale of its expansion efforts.
U.S. Commerce Secretary Howard Lutnick has underscored the strategic ambition to relocalize approximately 40% of Taiwan's semiconductor supply chain to American soil. This includes the substantial $165 billion investment TSMC has committed to its six new logic chip fabs and two advanced packaging facilities.
Anticipating continued growth, TSMC has stated its intention to further increase capital expenditures, with projected investments reaching up to $56 billion this fiscal year alone. Prospects include the possible addition of more logic fabrication plants in Arizona and the deployment of advanced semiconductor manufacturing capabilities within the U.S. borders.
In parallel to bolstering its American operations, TSMC is exploring expansion into the United Arab Emirates. The company is also progressing with the construction of its first fabrication plant in Germany and preparing to scale production soon after the anticipated opening of a factory in Japan in 2024.
Reflecting these developments, TSMC’s stock has appreciated by approximately 56% over the prior 12 months, affirming the market's confidence in the company's expansive execution. Market analysts have responded positively, with several brokerage firms adjusting price targets upward in light of TSMC’s strong performance at the onset of 2026.