The United States semiconductor push notched a key milestone as TSMC’s Arizona manufacturing facilities began producing advanced chips for AMD and Nvidia. The move is central to efforts to strengthen the domestic supply chain and reduce dependence on overseas production, supported by federal incentives from the Chips Act. TSMC’s Arizona campus is slated to include three fabrication plants, advanced packaging facilities, and a research and development center, reflecting sustained backing across administrations for onshore chipmaking.
AMD said in mid-April that it achieved validation of its 5th gen Epyc CPU products, codenamed Turin, at TSMC’s new Arizona fab. Nvidia separately disclosed that it is manufacturing its new Blackwell compute engines at TSMC’s Arizona facilities. The company said this marks its first production of Artificial Intelligence supercomputers in the United States and outlined plans to deliver substantial Artificial Intelligence infrastructure domestically over the next several years. Beyond Arizona, Nvidia is building supercomputer manufacturing plants in Texas with Foxconn in Houston and Wistron in Dallas, with mass production at both sites expected to ramp within 12 to 15 months.
TSMC’s Arizona program is designed to supply leading United States technology companies. The first fab is already producing 4 nm chips, a second facility is scheduled to start 3 nm production in 2028, and a third fab announced last April is planned for 2 nm or more advanced nodes. The company said these facilities aim to serve customers including AMD, Nvidia, and Apple. While the Arizona fabs have reportedly achieved production yields that surpass those of comparable plants in Taiwan, the project faces construction delays and labor shortages. TSMC’s new investment plan will require 40,000 construction workers over the next four years, as well as researchers and equipment engineers at the fabs.
TSMC also announced plans for a fresh investment in the United States that includes building five additional chip facilities in the coming years. That follows last year’s expanded investment and the commitment to add a third Arizona fab by 2030. Collectively, these efforts are expected to play a central role in the United States goal to triple domestic semiconductor manufacturing capacity by 2032 and to build a more resilient, end-to-end semiconductor ecosystem.
