[News] TSMC Reportedly Accelerates Arizona 2nd Fab, Eyes 3Q26 Tool Install, 2027 3nm Production

TSMC is reportedly moving to accelerate advanced U.S. chip production. According to Nikkei, sources say the company plans to begin moving chipmaking equipment into its second Arizona plant around the summer of 2026, setting the stage for 3nm manufacturing in 2027.

Sources cited by the report say equipment installation is expected in the July–September quarter of 2026. The report notes that once tools are installed at a chip plant, it can take up to a year to qualify production lines and ramp up output. However, it adds that more advanced chips may require additional time, as manufacturing now involves more than 1,000 steps and requires extensive work to transfer and validate processes at a new facility.

The current timeline aligns with TSMC Chairman and CEO C.C. Wei’s push to bring U.S. chip production forward by at least several quarters. The report adds that the company’s second Arizona plant had previously been slated to come online in 2028.

Beyond its second plant in Arizona, Commercial Times reports, citing sources, that TSMC is preparing to roll out bidding for construction-related contracts at its Arizona third plant by year end.

U.S. Operations and Customer Demand

Nikkei also notes that TSMC’s first overseas advanced chip plant, located in Arizona, has already begun producing some chips for Apple as well as NVIDIA’s latest Blackwell AI processors. The report highlights that once the $165 billion project is completed—including five chipmaking plants, two advanced packaging facilities, and an R&D center—TSMC expects around 30% of its most advanced chips to be manufactured in the U.S..

As TSMC’s 3Q25 earnings report indicates, North America accounted for 76% of total net revenue in the quarter, followed by Asia Pacific at 9%, China at 8%, Japan at 4%, and EMEA (Europe, the Middle East, and Africa) at 3%. Nikkei notes that this revenue concentration reflects TSMC’s customer mix, as most of its leading-edge manufacturing clients are U.S. companies, including NVIDIA, Apple, AMD, Intel, and Google.

Kumamoto Second Fab Faces Potential Delays

Meanwhile, according to Nikkei, sources say TSMC is considering shifting its second fab in Kumamoto toward producing more advanced chips than originally planned. As the report highlights, the company is weighing a move to 4nm production at the second plant—a change that could require design adjustments and potentially delay the project. The facility had initially been slated to produce 6nm and 7nm chips.

Read more

• [News] TSMC Arizona Hit by Q3 Profit Drop; Recovery May Hinge on 2nd Fab 3nm Mass Production in 2027
• [News] TSMC Reportedly Weighs Shifting Kumamoto 2nd Plant from 6nm/7nm to 4nm Amid AI Demand

(Photo credit: TSMC)