[News] TSMC Reportedly Eyes 2H27 3nm Mass Production at Arizona Fab 2; Four U.S. Fabs Said to Be Fully Booked

TSMC is accelerating its capacity expansion both at home and abroad, with construction timelines reportedly being compressed across the board. According to Commercial Times, sources say progress at the company’s Fab 21 site in Arizona is being brought forward, with the P2 fab now expected to begin 3nm mass production as early as the second half of 2027. The installation timelines for major mechanical and electrical systems at the P3 and P4 fabs are also being advanced from the original plan.

As the report highlights, overseas builds previously took around six quarters but can now be reduced to four to five, reflecting improved efficiency. The report adds that, as TSMC and its supply chain gain familiarity with local regulations and accumulate project management experience, U.S. build timelines have been shortened from about three years for the P1 fab to roughly 1.5 to 2 years, gradually approaching Taiwan’s efficiency levels.

In addition, supply chain sources cited by the report say that to accelerate progress at the Arizona fab, TSMC is planning to send more personnel to the U.S., covering key areas such as cleanroom MEP, main systems, and secondary distribution systems. Institutional investors note that cleanroom and MEP engineering have become the critical drivers behind the shorter timelines.

While TSMC has been accelerating its U.S. expansion, the report also states that its momentum in Taiwan has not slowed. For sub-2nm nodes, Hsinchu Fab 20 P3 and Kaohsiung Fab 22 P3 are said to begin equipment installation in the third quarter of 2026.

TSMC U.S. Fab Demand Stays Strong as Global Capacity Share Rises

Amid its accelerated U.S. expansion, demand for TSMC’s American capacity is also strengthening. According to Economic Daily News, earlier reports indicated that capacity at the upcoming three fabs had already been gradually reserved by customers. More recently, this is said to have extended to angstrom-class nodes, suggesting that capacity at a fourth fab in Arizona has also been booked.

As noted by Economic Daily News, major U.S. companies such as Apple, NVIDIA, AMD, and Qualcomm are reportedly factoring in geopolitical considerations, with TSMC’s steady expansion of its overseas fabs, particularly in the U.S., providing greater assurance to American customers.

Institutional investors cited by the report say that, as new fabs in Kumamoto, the U.S., and Germany begin contributing to revenue, TSMC’s overseas capacity could account for 20% of total capacity by 2028. Notably, the report adds that for sub-2nm nodes, the capacity mix is expected to reach roughly 70% in Taiwan and 30% in the U.S. by 2030.

Read more

• [News] TSMC Flags Significantly Higher Capex Over Next 3 Years; Arizona 4th Fab, Packaging Site in Works
• [News] TSMC Reportedly Plans 5 More Fabs in Arizona Under U.S. Trade Deal, Investment Could Top $100B

(Photo credit: TSMC)