[News] TSMC Plans Faster Shift to N2 and More Advanced Nodes in Arizona amid Soaring AI Demand

TSMC held its earnings call today, with its overseas expansion — particularly in the U.S. — as a key focus. Chairman and CEO C.C. Wei said the company is accelerating capacity expansion in Arizona and has made tangible progress.

Notably, Wei stated that they are preparing to “upgrade their technology faster to N2, and more advanced technology to Arizona,” given strong AI-related customer demand.

Wei also stated that the company is close to securing a second large piece of land nearby to support ongoing expansion plans, providing greater flexibility to respond to customer needs. This initiative will enable TSMC to scale up to a gigafab cluster in Arizona, serving key leading-edge customers in smartphones, AI, and high-performance computing (HPC).

As for its operations in Japan, Wei stated that construction of TSMC’s second fab in Kumamoto has begun, with the ramp-up schedule to be determined by customer demand and market conditions. He added that the company’s first specialty fab in Kumamoto began volume production in late 2024 with good yield.

In Dresden, Germany, Wei stated that construction of the specialty fab has begun, with the ramp-up schedule to be determined by customer demand.

Meanwhile, in Taiwan, the company is preparing multiple phases of 2nm fabs in both Hsinchu and Kaohsiung, and will continue to invest in leading-edge and advanced packaging locally.

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(Photo credit: TSMC)