May 1, 2025 /SemiMedia/ — TSMC has broken ground on its third wafer fabrication facility in Arizona, accelerating its U.S. expansion plans as the company responds to rising demand for domestic chip production and competitive foundry dynamics.

The announcement coincided with a site visit from U.S. Commerce Secretary Howard Lutnick and marks the launch of TSMC’s third phase in the U.S., which the company described as the largest single foreign direct investment in American history.

TSMC, a key supplier to Apple and NVIDIA, is central to U.S. efforts to localize semiconductor production. In March, CEO C.C. Wei joined former President Donald Trump at the White House to unveil an additional $100 billion investment aimed at boosting U.S. chip output. This brings TSMC’s total planned U.S. investment to $165 billion.

Under its current roadmap, TSMC aims to establish six advanced wafer fabs and two advanced packaging facilities in the U.S., supporting next-generation technologies across AI, HPC, and automotive sectors.