TSMC completed construction on its 3-nanometer Fab 2 in north Phoenix in April 2026 and broke ground the same month on Fab 3, a 2-nanometer plant. The Arizona campus is now planned to scale to six fabs at a total investment of $165 billion — the largest single greenfield foreign direct investment ever announced in the United States and the largest semiconductor construction program in U.S. history.

Project Scope

The Phoenix site sits on roughly 1,100 acres in north Phoenix and is being built out in phases:

• Fab 1: Operational since late 2024 — 4nm process node, ramping to volume
• Fab 2: Construction complete April 2026; tool-in begins Q3 2026; volume 3nm production scheduled for H2 2027
• Fab 3: Groundbreaking April 2026; expected to run 2nm and A16 process; equipment install later in 2026
• Fabs 4–6: Planned through the late 2020s, including an advanced packaging facility (CoWoS) and a TSMC R&D center

Each fab is roughly 2 million square feet of cleanroom and support space, with vibration-isolated slab construction, ultra-pure water systems, and dedicated chemical and gas yards. Construction labor at peak across the campus has run between 12,000 and 23,000 workers, drawn from a national network of fab-experienced contractors.

Current Status

Active heavy construction on Fab 3 alongside parallel tool-in work at Fab 2. TSMC raised the latest tranche of board-approved funding by $20 billion in May 2026, bringing total committed investment to $165 billion. The first fab is in steady-state production at the 4nm node, and the planned six-fab buildout is sequenced to complete by the late 2020s, with the 2nm node tied to broader 2027–2028 schedule.

Why It Matters

The Arizona campus is the operational test of U.S. semiconductor onshoring at the leading edge. Three things are converging:

1. Process parity: TSMC’s announced production schedule places leading-edge nodes in the U.S. within roughly one generation of its Taiwan fabs — the smallest gap in two decades.
2. CHIPS Act delivery: $6.6 billion in direct grants and up to $5 billion in loans were committed to TSMC under the program. The Arizona milestones are the federal government’s most-watched proof point that the program is moving from announcement to substation.
3. Construction workforce base: Phoenix is now the de facto national training ground for advanced-fab construction labor. Wage and trade-skill data from the site is reshaping bidding patterns for other industrial megaprojects across the Southwest.

The cleanroom design and MEP demands at 2nm are an order of magnitude tighter than at 4nm. Bidders on follow-on fab work nationally are watching the Fab 2 tool-in window closely.

Key Stakeholders

• Owner / Operator: TSMC Arizona Corporation
• Federal funding: U.S. Department of Commerce (CHIPS Act)
• State partner: Arizona Commerce Authority; City of Phoenix
• Major contractors: Hensel Phelps, McCarthy Building Companies, Sundt Construction
• MEP: Southland Industries, Rosendin Electric
• Cleanroom: M+W Group / Exyte (process cleanroom build-out)

Anchor employers Apple, AMD, NVIDIA, and Qualcomm have all committed to allocate leading-edge production to the Arizona fabs.