Apple Chip Supplier TSMC Plans to Build Second $12 Billion Arizona Factory

Apple chip supplier TSMC plans to build another fabrication plant in Arizona alongside the $12 billion factory it has already committed to in Phoenix, reports The Wall Street Journal.

tsmc arizona

TSMC's topping-out ceremony for its first plant in Arizona

The second plant will be located north of Phoenix and investment is expected to be roughly similar to the $12 billion the company committed to in 2020, according to people familiar with the plans who spoke to WSJ.

The original plant was originally expected to exclusively mass-produce 5nm chips, but it is now gearing up to also produce more advanced 4nm chips with larger capacity at the facility, according to WSJ's sources. The plant is expected to start mass production in 2024.

Meanwhile, the second plant is expected to manufacture cutting edge next-generation 3nm chips, a process that Apple is rumored to be moving its custom silicon to starting with the M2 Pro or M3 chip. Both Apple's M3 chip for Macs and A17 chip for iPhone 15 Pro models are expected to be manufactured based on TSMC's enhanced ‌3nm‌ process. Bloomberg's Mark Gurman has said he expects the M2 Pro to be used in the 14-inch MacBook Pro, 16-inch ‌MacBook Pro‌, and a high-end Mac mini.

The news about TSMC's unannounced plans follows attempts by the Biden administration to attract investments in U.S. chipmaking by offering companies billions in financial support to become established in the country. The efforts aim to counter China's tech sector ambitions and secure components considered vital to national security. The efforts were accelerated after the chip shortages in late 2020 and 2021 underlined how important semiconductors have become in the world of consumer electronics.

TSMC's main factories are located in Taiwan, but it already operates a factory in Camas, Washington, as well as design centers in Austin, Texas and San Jose, California, meaning that the second Arizona facility will be its third manufacturing site in the United States.

Popular Stories

Beyond iPhone 13 Better Triad

Apple's 20th Anniversary iPhone May Finally Go All Screen

Tuesday April 15, 2025 6:31 am PDT by
Apple is preparing a "bold" new iPhone Pro model for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. As part of what's being described as a "major shake-up," Apple is said to be developing a design that makes more extensive use of glass – and this could point directly to the display itself. Here's the case for Apple releasing a truly all-screen iPhone with no...
maxresdefault

iPhone 17 Pro Launching Later This Year With These 12 New Features

Sunday April 13, 2025 7:52 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Subscribe to the MacRumors YouTube channel for more videos. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and ...
CarPlay Hero

Apple Releases Wireless CarPlay Fix

Wednesday April 16, 2025 11:28 am PDT by
If you have been experiencing issues with wireless CarPlay in your vehicle lately, it was likely due to a software bug that has now been fixed. Apple released iOS 18.4.1 today, and the update's release notes say it "addresses a rare issue that prevents wireless CarPlay connection in certain vehicles." If wireless CarPlay was acting up for you, updating your iPhone to iOS 18.4.1 should...
iOS 19 Roundup Feature

iOS 19 Will Add These New Features to Your iPhone

Tuesday April 15, 2025 7:37 am PDT by
The first iOS 19 beta is less than two months away, and there are already a handful of new features that are expected with the update. Apple should release the first iOS 19 beta to developers immediately following the WWDC 2025 keynote, which is scheduled for Monday, June 9. Following beta testing, the update should be released to the general public in September. Below, we recap the key...
iphone 16 pro models 1

17 Reasons to Wait for the iPhone 17

Thursday April 17, 2025 4:12 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we often get rumored features months ahead of launch. The iPhone 17 series is no different, and we already have a good idea of what to expect from Apple's 2025 smartphone lineup. If you skipped the iPhone...
Apple 2025 Thumb 1

10 Products Still Coming From Apple in 2025

Friday April 11, 2025 4:14 pm PDT by
Apple may have updated several iPads and Macs late last year and early this year, but there are still multiple new devices that we're looking forward to seeing in 2025. Most will come in September or October, but there could be a few surprises before then. We've rounded up a list of everything that we're still waiting to see from Apple in 2025. iPhone 17, 17 Air, and 17 Pro - We get...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Friday April 18, 2025 5:16 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iOS 18

Apple Releases iOS 18.4.1 With Bug Fixes

Wednesday April 16, 2025 10:11 am PDT by
Apple today released iOS 18.4.1 and iPadOS 18.4.1, minor updates to the iOS 18 and iPadOS 18 operating systems that came out last September. iOS 18.4.1 and iPadOS 18.4.1 come two weeks after the launch of iOS 18.4 and iPadOS 18.4. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. There have been complaints about ...
iPhone 6s MacRumors YouTube

Apple Says These Products Are Now Vintage

Tuesday April 15, 2025 9:53 am PDT by
Apple today updated its vintage products list to add the 2018 Mac mini and the iPhone 6s, devices that will get more limited service and repairs now that they are considered vintage. The iPhone 6s initially launched in 2015, but Apple kept it around as a low-cost device until 2018, which is why it is only now being added to the vintage list. The iPhone 6s had Apple's A9 chip, and it was...

Top Rated Comments

MichaelQ Avatar
32 months ago
Good on TSMC for not caving in to peer pressure and keeping their logo from 1983.
Score: 31 Votes (Like | Disagree)
Shirasaki Avatar
32 months ago
The sooner we can cut the reliance on China for iPhone production the better. Also yes, national security Heh…
(Yes the chip is produced in Taiwan but still)
Score: 26 Votes (Like | Disagree)
darngooddesign Avatar
32 months ago
It's great for Arizona and great for US workers, but should we be building a second chip factory, which will require a lot of water to run, in a state suffering from historic drought? Hopefully they are also leaning into solar for its power requirements because the Hoover Dam's hydro output is already suffering as those water levels drop.
Score: 24 Votes (Like | Disagree)
ProfessionalFan Avatar
32 months ago
Guy on the left has a hell of a beard. I like this deal just based on that
Score: 13 Votes (Like | Disagree)
anakin44011 Avatar
32 months ago
$12B sounds like a lot of money until you wonder how much of its capacity is already pre-sold. That, and the tax break, probably make it a no-brainer.

Provided they can get enough neon required to actually make the chips. I have read that:

:( Ukraine produces 90% of the semiconductor-grade neon used by the U.S.

:( Some 45%-54% of the world’s semiconductor grade neon, critical for the lasers used to make chips, comes from two Ukrainian companies, Ingas and Cryoin, both of which shuttered their operations earlier this year.

Not only has Ukraine fed many of its neighboring countries with its wheat production...now we have chip-grade neon on the other side of the spectrum. Globalized supply chains are as complicated as they are vulnerable. Let's hope TMSC (and Intel, for that matter), can get the raw materials they need to actually run those plants.
Score: 9 Votes (Like | Disagree)
tridley68 Avatar
32 months ago
Good. On them for building in the U.S. The sooner we cut China out of the picture the better we will be.
Score: 9 Votes (Like | Disagree)