April 6, 2026 /SemiMedia/ — Taiwan Semiconductor Manufacturing Co (TSMC) is accelerating the expansion of its U.S. wafer fab network, planning a GigaFab cluster in Arizona comparable to its Hsinchu facilities in Taiwan.

According to reports, the company intends to operate 12 plants in the U.S., including two new wafer fabs and two advanced packaging plants, with total investment reaching $500 billion. The expansion will move both production capacity and talent while aligning the supply chain, enabling full chip manufacturing capabilities in the U.S. once operational.

Despite challenges including high construction costs, labor expenses, and wafer depreciation, TSMC’s U.S. expansion continues steadily. Supply chain sources say these 12 plants represent the company’s largest overseas investment to date, evolving from an initial “risk diversification base” into a key extension for advanced nodes and packaging, reshaping the U.S. semiconductor manufacturing landscape.

Recent U.S.-Taiwan tariff agreements and government incentives for labor and economic support have strengthened confidence in the Arizona expansion. Analysts note the U.S. facilities aim to approach Taiwan-level capacity, providing more reliable local supply for roughly 70% of U.S. fabless clients.

While operating costs in the U.S. are two to three times higher than in Taiwan region, with expensive labor, stricter regulations, and lower construction efficiency, the project currently yields little profit and may face losses. Nevertheless, TSMC continues to increase capital expenditure to secure its role in global AI computing infrastructure and long-term strategic positioning.