December 31, 2025 /SemiMedia/ — Taiwan Semiconductor Manufacturing Company (TSMC) is pushing forward with its U.S. production plans, significantly accelerating the timeline for its 3nm process at its Arizona plant. Originally slated for 2028, TSMC now expects to begin mass production of the 3nm process by 2027, a year ahead of schedule.

Rising Demand and Intensifying Competition Drive Expansion

TSMC’s Arizona facility is one of its largest investments, with the company pouring significant resources into this project. The shift to U.S. manufacturing is part of TSMC’s broader strategy to bolster the global supply chain while answering the call for “Made in the USA” products. Though initially planned for 2025, TSMC now appears set to fast-track production, especially for its advanced 3nm node.

The first TSMC plant in Arizona is already operational with 4nm process technology, while a second plant is dedicated to the upcoming 3nm process, with mass production set to begin in 2027. A primary factor driving this accelerated timeline is the rising demand from high-performance computing (HPC) customers, who require cutting-edge nodes such as 4nm, 3nm, and even 2nm. Additionally, the growing AI (artificial intelligence) trend has fueled further demand, prompting TSMC to expand its capacity.

Another important factor behind the acceleration is the increasing competitive pressure from regional rivals. Intel has made significant progress with its Intel 18A (1.8nm) node, while Samsung's foundry business is emerging as a strong competitor. Samsung plans to ramp up its Taylor plant project, adopting the SF2 (2nm) process instead of the previously planned 4nm process. The company has also secured a major deal with Tesla, signaling that customers are increasingly looking for alternatives to TSMC.

Despite challenges such as escalating capital expenditures and labor shortages, TSMC has few options but to expand its capacity rapidly in response to the booming demand for advanced semiconductor technologies. Balancing the growth of its global wafer fabs, including its expansion plans in Japan, will be crucial in the coming years.