[News] TSMC’s 2nd Arizona Fab Reportedly to Install 3nm Gear in 3Q26, U.S. Price Hikes Likely over 10% Next Year

As part of its fast-tracked U.S. expansion, TSMC’s second Arizona fab (P2) is set to begin equipment installation as early as Q3 2026, with mass production slated for 2027, according to Commercial Times.

The report highlights TSMC’s push to compress construction into just two years, with the supply chain anticipating an even faster timeline to meet customer demand and navigate U.S. tariffs. Notably, analysts cited in the report also expect TSMC to raise wafer prices by another 3–5% in 2026 to offset rising construction costs, with price hikes at U.S. fabs potentially exceeding 10%.

TSMC’s first Arizona fab, which kicked off 4nm production in late 2024, has reportedly delivered its first batch of chips for major clients like Apple, NVIDIA, and AMD, with the chips already shipped to Taiwan for advanced packaging, according to an earlier Commercial Times report. Meanwhile, construction on the second Arizona facility got underway ahead of schedule in April 2025, Commercial Times adds.

TSMC Chairman C.C. Wei revealed that while the first Arizona fab centers on 4nm production, the second will advance to 3nm. The third and fourth fabs are set to push even further, featuring cutting-edge nodes like N2 and A16, Wei stated.

U.S. 1st Advanced Packaging Plant May Not Break Ground Until 3Q26

However, the report warns that due to the U.S. site’s vast scale, only portions of TSMC’s planned facilities may be completed and operational before 2029. For example, TSMC’s first advanced packaging plant in Arizona (AP1), focused on SoIC (System-on-Integrated-Chips), is set to break ground by Q3 2026—meaning CoWoS packaging will still rely on Taiwan, the report notes.

According to Liberty Times, TSMC confirmed the land for the two advanced packaging plants in the U.S. is still under review. As noted by the report, TSMC owns 1,100 acres (about 445 hectares) in Arizona, planned for six fabs. However, the two advanced packaging plants and one R&D center will likely need separate sites, the report adds.

NVIDIA had confirmed its 4nm chips started production at TSMC’s Arizona plant in January, but as Reuters reported, these chips still need to be shipped back to Taiwan for advanced packaging.

Read more

• [News] TSMC’s $165B Arizona Investment to Create 12,000 Jobs Once All Facilities Are Operational
• [News] TSMC Ramps Up Overseas Expansion: 3rd and 4th Arizona Fabs to Begin Construction Later This Year
• U.S. to Hold Over 20% of Advanced Semiconductor Capacity by 2030, TSMC Expands Investment to US$165 Billion, Says TrendForce

(Photo credit: TSMC)