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TSMC's Arizona Expansion Promises 40,000 New U.S. Jobs
TSMC launched construction of its third semiconductor plant in Arizona today, marking the largest foreign investment in U.S. manufacturing history. U.S. Commerce Secretary Howard Lutnick visited the site to mark the milestone.
The Taiwan-based chipmaker will invest an additional $100 billion to build three new chip plants, two packaging facilities, and a research center. This expansion adds to TSMC's existing $65 billion investment in Arizona.
The project will create 40,000 construction jobs over four years and thousands of permanent high-tech positions. TSMC expects the expansion to generate $200 billion in economic output across Arizona.
Timeline for Advanced Chip Production
The first Arizona plant already makes 4-nanometer chips. The second facility, set to open in 2028, will produce more advanced 3nm, 2nm, and A16 chips. The third plant will start operations in 2030, focusing on 2nm and newer technology.
Apple CEO Tim Cook confirmed his company will be TSMC's largest Arizona customer. NVIDIA's Jensen Huang praised the move to bring AI chip production to America, while AMD's Lisa Su announced plans to make their newest server processors at the facility.
Strategic Timing and Market Impact
TSMC's expansion comes as the U.S. pushes to strengthen domestic chip manufacturing. The company's stock rose on the news, reflecting investor confidence in the strategy.
"We're bringing advanced semiconductor capacity to the United States," said TSMC CEO C.C. Wei. "This supports America's leading innovators in smartphones, high-performance computing, and AI."
Why this matters:
TSMC's investment marks the largest foreign manufacturing commitment in U.S. history, reshaping the global chip supply chain
The project brings cutting-edge chip production to American soil, reducing dependence on overseas manufacturing while creating thousands of high-tech jobs
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