Inside TSMC's US$165bn Manufacturing Investment in the US

Taiwan Semiconductor Manufacturing Co is set to accelerate its multibillion dollar expansion in Arizona semiconductor manufacturing site (fabs), according to CNBC.

TSMC has invested US$165bn in its first three fabs in Arizona; its first fab began production on technology in 2025, with the second and third fab set to begin production by the second half of 2027 and the end of the decade, respectively. The company is set to expand that investment, according to CNBC.

The Apple and Nvidia AI chip supplier has recorded net revenue up 35.1% in Q1 2026. TSMC recorded NT$1.134tn (US$35.67 bn) for January to March 2026, up from NT$839tn (US$26.39bn) a year ago, marking a 35.1% increase in profits. This comes during widely reported disruptions in supply chains for helium, which is needed for semiconductor manufacturing. 

Arizona fabs expansion

While TSMC has begun work on its first three fabs in Arizona, TSMC's plans in Arizona include six semiconductor wafer fabs, two advanced packaging facilities and an R&D team centre. 

The operation’s first three fabs will result in 6,000 direct jobs and tens of thousands of jobs in construction and supply.

Speaking with CNBC, TSMC Chief Financial Officer Wendell Huang said: “We have strong conviction on the AI mega trend and that is the reason we are stepping up the capital expenditures to expand in Taiwan and in the US.

"Not just to expand, but also try to accelerate where it is possible to satisfy or narrow the gap.”

CNBC reported in January that the company had purchased an additional 900-acre lot in Arizona; some facilities that were part of the original plan will now be built on this second piece of land instead, with the remainder “used for future flexibilities,” Wendell said to CNBC.

Supply chain disruptions

The closure of the Strait of Hormuz has impacted the supply of helium needed for advanced semiconductor manufacturing. Forbes estimates that TSMC sourced 69% of its helium from the Gulf Cooperation Council in 2024. 

TSMC has said “monitoring the situation closely” and does not anticipate significant near-term production impacts, citing diversified contracts, robust on-site recycling (often 80-90% recovery rates at leading fabs) and existing inventories, according to reporting from Forbes. 

Other semiconductor manufacturers, Samsung Electronics and SK Hynix, which supply roughly two-thirds of the world's memory ‌chips, ⁠have four to six months worth of helium inventory, a source told Reuters in early April 2026. 

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US semiconductor manufacturing

TSMC have said its fabs in Arizona will strengthen America’s leadership in critical technologies like AI, high-performance computing and advanced mobile applications. 

The effort is part of a broader move to reshore advanced manufacturing to the US, in line with US President Donald Trump’s efforts to boost US manufacturing. 

Apple has committed to an investment in US manufacturing of over US$600bn over the next four years.

Samsung Electronics' new US$17bn semiconductor fabrication facility in Texas recently moved into the installation and commissioning phase. 

In March, Elon Musk, Tesla CEO, announced two large fabs in Texas. When announcing the launch, the demand his companies have for advanced semiconductors outweighed global supply. Elon said: “To Samsung, TSMC, Micron and others. And we would like them to expand as quickly as they can.

“And we will buy all of their chips. I have said these exact words to them.”