TSMC announced an additional investment of $100 billion in Arizona, raising its total investment in the state to $265 billion. CFO Wendell Huang stated that the company’s operations in Arizona have exceeded expectations, prompting the increased funding.
Huang emphasized that demand for AI chips is not temporary but indicates a long-term structural growth trend. TSMC’s investment decisions are seen as a key indicator of growth in the AI sector.
The company reported that its first production facility in Arizona has commenced operations, achieving production efficiency comparable to its factories in Taiwan. The second factory is expected to begin equipment installation soon, while construction of the third factory is ongoing.
Preparatory work has also started for the fourth facility and the first advanced packaging center. Upon completion, TSMC’s Arizona campus will consist of 12 manufacturing facilities, a packaging center, and a research and development unit.
Huang noted challenges in the investment process, including a shortage of construction workers and inadequate infrastructure capacity. He stated that TSMC is working closely with the U.S. government to address these issues.
Despite accelerating investments in the U.S., TSMC reiterated that the most advanced chip production technologies will remain in Taiwan. Huang explained that advanced manufacturing processes require close integration with research and development activities, making it strategically important for the most advanced production capacity to be located in Taiwan.
TSMC is also considering issuing bonds to finance its investment expenditures if market conditions are favorable.
