[News] TSMC Reportedly Plans 5 More Fabs in Arizona Under U.S. Trade Deal, Investment Could Top $100B

Just days ahead of its January 15 earnings call, TSMC stepped up its U.S. push with a US$197 million land purchase for a future gigafab — a move that signals the foundry giant is preparing for another major wave of investment. The New York Times and The Wall Street Journal report that Washington is in the final stages of clinching a trade agreement that would cut tariffs on Taiwanese exports to 15 percent, and that TSMC is a central part of the deal, committing to build at least five additional fabs in Arizona.

TSMC has already brought one fabrication plant in Arizona online in late 2024 and is completing a second facility scheduled to open in 2028. The company has already pledged to build four more plants over the coming years.

On the other hand, Bloomberg offers a slightly different perspective on the deal, reporting that TSMC would commit to at least four additional chipmaking plants in Arizona, adding to the six factories and two advanced packaging facilities it has already pledged in the state.

The outlet notes that with construction costs for a single fab exceeding $20 billion, TSMC’s expanded investment could approach or surpass $100 billion. The four new plants are expected to come online in the 2030s, according to a source familiar with the matter cited by Bloomberg.

Expansion Adds to Dozen-Facility Footprint Amid U.S.-Taiwan Trade Talks

The Wall Street Journal reports that the new agreement — expected to be announced as early as this month — would see the U.S. reduce tariffs on Taiwanese imports from the current 20 percent rate, while Taiwan would commit over US$300 billion in foreign direct investment and related spending in the U.S. Notably, that total builds on and expands the US$165 billion investment pledge that TSMC unveiled in 2025, the report adds.

The newly proposed Arizona fabs, according to The Wall Street Journal, would focus on producing advanced logic chips — including processors designed by NVIDIA, AMD and other key TSMC customers for use in artificial intelligence and high-performance computing.

As highlighted by The New York Times, the Trump administration has used Section 232 of the national security statute to impose tariffs on steel, aluminum, cars, copper, lumber, and other goods, with a semiconductor investigation long anticipated. TSMC’s planned U.S. investments could shield it from potential chip tariffs, as administration officials have indicated that companies investing domestically would be exempt, though the specifics of the arrangement remain unclear, the report adds.

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(Photo credit: TSMC)