TSMC Advances $165B Investment Plan With New Capital Injection
The manufacturer has constructed two of the six planned plants, with a third underway.
Taiwan Semiconductor Manufacturing Co.’s board has approved a $20 billion injection to its Arizona subsidiary. This investment advances the company’s $165 billion development plan, as reported by Tom’s Hardware.
The story of TSMC Arizona began with a $12 billion investment for a single manufacturing plant in 2020. Two years later, the commitment grew to $62 billion with plans for a second fab. Then, in 2024, the company announced the intention to build a third plant, upping the investment to $65 billion.
Last year, TSMC earmarked an additional $100 billion, bringing the total planned investment at the time to $165 billion—the single largest direct foreign investment in U.S. history. This massive expansion involves three new fabs, nudging the total to six, as well as two new packaging factories and an R&D facility.
READ ALSO: Phoenix’s Industrial Market Still a Standout
So far, the company has completed construction on two fabs, with one already reaching high-volume production in 2024, and the other slated to follow in 2027. Last year marked the very first full year of mass production, which netted TSMC’s Arizona property a profit of $514 million, according to reports by the Taipei Times. The firm is currently developing the third fab, which broke ground in 2025.
Some of the companies that lined up to buy TSMC’s chips include Apple, the largest customer at the site, as well as NVIDIA, which tapped TSMC to create the Blackwell chips used to meet the mounting data center demand.
New CRE ecosystem takes shape around TSMC’s campus
Located on roughly 1,100 acres at 5088 W. Innovation Circle, TSMC’s Arizona campus is within Phoenix’s Northwest Valley, an industrial submarket with a tight 8.2 vacancy rate, below the wider metro average of 12.0 percent in March, according to a Cushman & Wakefield report.
This massive property created its own ecosystem, attracting other major developments. Two months ago, Mack Real Estate Group and McCourt Partners broke ground on Halo Vista, a 2,300-acre, $7 billion master-planned development adjacent to TSMC’s campus. The project includes plans for 30 million square feet of industrial, manufacturing, office, retail, residential and educational uses.
Amkor Technology, a semiconductor packaging and testing company, also broke ground on a $7 billion advanced manufacturing campus in Peoria, Ariz., roughly 20 miles from TSMC’s site. Completion is slated for 2027, with the company aiming to collaborate with TSMC to provide solutions across computing, communications and automotive industries.
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