January 8, 2026 /SemiMedia/ — Taiwan Semiconductor Manufacturing Co is reviewing plans to further expand its manufacturing presence in Arizona, potentially adding both wafer fabrication and advanced packaging capacity beyond what has already been outlined, people familiar with the discussions said.

Arizona expansion under review as TSMC weighs additional capacity

The latest internal assessments include options to lift the number of wafer fabs at the site from six to eight. In parallel, the company is also considering enlarging its advanced packaging footprint, with the number of related facilities possibly rising from two to three or four as demand for advanced-node chips and high-performance computing continues to build.

People in the supply chain say Arizona is increasingly being treated as the anchor of TSMC’s overseas manufacturing network. Alongside the existing complex, preparations are under way to secure an additional parcel of land nearby, giving the company room to support longer-term capacity expansion and process upgrades.

Advanced packaging plans align with AI and HPC demand

Work on two advanced packaging plants, referred to as AP1 and AP2, is expected to get under way in early 2026. These facilities generally take less time to build than wafer fabs, allowing for a more flexible production ramp.

AP1 is currently expected to move into volume output around 2028, concentrating on technologies such as system-on-integrated-chips (SoIC) and chip-on-wafer (CoW), which are increasingly used in AI processors and advanced logic products.

Taken together, the Arizona site could eventually accommodate more than ten fabrication and packaging facilities. Capital spending tied to the project is therefore likely to stay at relatively high levels through the 2026 to 2028 timeframe, the people said.