[News] TSMC Reportedly Pulls Arizona Third Fab to 2027, Ahead by One Year, Eyeing 2nm and A16

As U.S. Commerce Secretary Howard Lutnick floated the idea of a “50-50 split” in chip production between the U.S. and Taiwan in a NewsNation interview, Economic Daily News suggests TSMC is moving faster in Arizona. Its third fab could enter mass production as early as 2027—beating the original schedule by a full year, the report adds.

The report highlights that this facility is poised to host TSMC’s most advanced nodes, including 2nm and angstrom-class A16 processes, which had initially been slated for 2028.

As Tom’s Hardware notes, if TSMC were to shift its most advanced nodes to the U.S., it would mark a historic change in where cutting-edge chips are produced. Its first Arizona fab is already making N4, with N3 and eventually N2 planned at Fab 21 by 2028–2029, the report adds.

Industry sources cited by the Economic Daily News say the accelerated timeline reflects two key drivers: surging demand from U.S. clients for local capacity and Washington’s call for a more balanced chip production split with Taiwan. By moving faster in Arizona, TSMC could also ease geopolitical tensions that risk complicating its expansion strategy, the report notes.

U.S. Steps Up Pressure on TSMC

Speaking in a NewsNation interview on Saturday (Sept. 27), Lutnick highlighted that 95% of the chips the U.S. depends on are made in Taiwan. He aims to raise America’s share of global chip output from 2% to 40%, a move that would require up to $500 billion in investment and relocating much of the semiconductor supply chain.

TSMC also faces additional U.S.-driven pressures. The Wall Street Journal reported last week that Intel approached the foundry about potential investments or manufacturing partnerships. However, TSMC swiftly denied the claims, telling Focus Taiwan that no talks on joint ventures, technology licensing, or transfers have taken place.

Strong 2nm Demand

Meanwhile, TSMC’s 2nm node is set to enter mass production by year-end, with demand already running high—a trend that underpins its latest push. Citing KLA, Investing.com and MyDrivers report that roughly 15 customers are now designing on N2, about 10 of which target high-performance computing. Among them are reportedly NVIDIA and AMD, developing products like NVIDIA’s Rubin Ultra and AMD’s Instinct MI450 AI series.

TSMC’s first Arizona fab hit 4nm mass production in Q4 2024, achieving yields comparable to its Taiwan sites, the Economic Daily News reports, citing the company’s July earnings call. The second fab, designed for 3nm, has also completed construction.

Meanwhile, the report also highlights that TSMC’s third Arizona fab, targeting 2nm and A16 nodes, is already under construction, with AI-driven demand spurring plans for a faster ramp-up. A fourth fab will use the same technologies, while the fifth and sixth are slated for even more advanced nodes.

For now, Taiwan remains TSMC’s primary hub for cutting-edge nodes, with A16 mass production reportedly expected in Taichung and Kaohsiung in the second half of 2026.

Read more

• [News] TSMC 2nm Gains Steam: MediaTek Completes First 2nm Tape-Out as Apple Preps A20, M6, R2
• [News] NVIDIA May Be Among the First to Adopt TSMC A16 for 2028 Feynman Architecture
• [News] Rapidus 2HP Reportedly Surpasses Intel 18A Logic Density Impacted by BSPDN, Rivals TSMC

(Photo credit: The White House)