TSMC triples spending on Arizona advanced chip site

TSMC has confirmed it will build not one, but two advanced chip manufacturing plants in Arizona, more than tripling the Asian foundry giant's original investment to $40 billion, even though the company has complained about the US project becoming a major headache for multiple reasons.it plans to construct a second fab in Phoenix, Arizona, that will produce 3nm chips when it goes online in 2026.

This will cost roughly $40 billion for TSMC — which counts Apple, Nvidia, and AMD as major customers — far greater than the initial $12 billion investment it originally planned.

In a letter to the US Commerce Department last month, the company said the hurdles include a shortage of skilled workers, high costs, and unexpected construction issues that have popped up for its first plant in Arizona, according to"A range of construction costs and project uncertainty in Phoenix makes building the same advanced logic wafer fab in Taiwan considerably less capital intensive," the company was quoted as saying.

For one, the two fabs in Arizona combined are expected to produce over 600,000 wafers per year. That will be a tiny fraction of TSMC's total manufacturing output in Taiwan of more than 2 million wafers perbetween the company's mature and advanced nodes, said Wang Mei-hua, Taiwan's minister of economic affairs, according to a recent

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