Taiwan Semiconductor Manufacturing Company could expand its presence in Arizona beyond its current $165B total expected investment under a potential trade deal currently in discussions between the Trump administration and Taiwan.
Under the proposed agreement, the U.S. would reduce tariffs on Taiwanese exports to 15%, down from the current 20%. Taiwan would, in turn, pledge more than $300B in foreign direct investment in the United States.
The Taiwanese investment would expand on TSMC’s currently pledged $165B plan for six semiconductor fabs, two advanced packaging facilities and a research and development center at its north Phoenix site. TSMC could build “several” more facilities in Arizona, reaching as many as a dozen, according to reports.
To date, the company has completed two fabs in north Phoenix and has a third under construction.
In addition to its existing projects, TSMC recently bought 902 acres of adjoining property at an Arizona State Land Department auction for more than $197M. That land is expected to be used for the upcoming expansion.
The potential additional investment is thought to be worth more than $100B. TSMC has not given specific details about expansion plans, and no official timeline has been announced, but sources have put the expected completion of the fabs at some point in the 2030s. (Source)