The second fab of the Taiwanese computer chip manufacturing firm at the TSMC Arizona site is expected to start production of 3nm process technology in 2026 and alongside the other fab will produce a total of 600,000 wafers per year

Fab3outc001

The second fab of TSMC Arizona is expected to begin production of 3nm process technology in 2026. (Credit: Taiwan Semiconductor Manufacturing Company Limited)

Taiwan Semiconductor Manufacturing (TSMC) has started construction of its second semiconductor manufacturing facility in Phoenix, Arizona, thereby increasing its overall investment in the American state to nearly $40bn.

The second fab of the Taiwanese firm at the TSMC Arizona site is expected to begin production of 3nm process technology in 2026.

Its first semiconductor fab, which entails an investment of $12bn, broke ground in mid-2021. Involving an investment of $12bn, the first fab is expected to start the production of N4 process technology in 2024.

According to TSMC, the overall investment for the two chip manufacturing plants is one of the largest foreign direct investments in the US, and the largest in Arizona.

A ceremony held by the company to mark the arrival of the first batch of semiconductor manufacturing equipment at TSMC Arizona was attended by US President Joe Biden.

Upon their completion, the two semiconductor fabs are expected to produce more than 600,000 wafers annually with an estimated end-product value of over $40bn.

The fabs will generate nearly 10,000 high-tech jobs, including 4,500 direct jobs, stated the Taiwanese company.

Besides, the construction of the two plants is said to involve more than 10,000 workers.

TSMC chairman Mark Liu said: “When complete, TSMC Arizona aims to be the greenest semiconductor manufacturing facility in the United States producing the most advanced semiconductor process technology in the country, enabling next generation high-performance and low-power computing products for years to come.

“We are thankful for the continual collaboration that has brought us here and are pleased to work with our partners in the United States to serve as a base for semiconductor innovation.”

TSMC also revealed its plans to install an on-site industrial water reclamation plant to enable the TSMC Arizona semiconductor fabs in achieving near zero liquid discharge.