TSMC to Acquire Second Plot of Land for Arizona Fabs, Aiming to Bring N2 and Future Chip Technologies to the US
Taiwan Semiconductor Manufacturing Company (TSMC) is accelerating its expansion in the United States as demand for cutting-edge chip production surges. The company revealed during its Q3 2025 earnings call that it is in the process of acquiring a second large piece of land near its existing Arizona fabs, signaling plans for a long-term expansion to accommodate next-generation process technologies, including N2 (2nm) and beyond.
TSMC’s Arizona facilities are currently mass-producing chips using the 4nm process, serving major American clients such as NVIDIA, AMD, and Apple. With the ongoing boom in AI and high-performance computing, CEO C.C. Wei confirmed that the company will bring its N2 and advanced process nodes to the US more rapidly than initially planned.
“We are making tangible progress and executing well to our plan. In addition, we are preparing to upgrade our technologies faster to N2 and more advanced process technologies in Arizona, given the strong AI-related demand from our customers,” Wei said during the call.
“Furthermore, we are close to securing a second large piece of land nearby to support our current expansion plans and provide more flexibility in response to the very strong multiyear AI-related demand.”
The move highlights TSMC’s strategic intent to strengthen domestic semiconductor manufacturing in the US and reduce reliance on Taiwan-based production, aligning with both customer expectations and global supply chain resilience goals.
Currently, Taiwan remains a few years ahead in cutting-edge semiconductor manufacturing. However, with N2 process production expected to begin in Arizona by the second half of 2026, the gap could narrow significantly. The expansion will also position TSMC as the second company after Intel to produce 2nm-class chips on American soil.
Looking beyond N2, TSMC has hinted at scaling to A16 (1.6nm) in its Arizona fabs in the future, underscoring its commitment to maintaining technological leadership and ensuring its US customers have access to the latest manufacturing capabilities.
The Arizona site currently consists of six fabs under construction or in operation, focused on advanced node production. The addition of a second land plot will give TSMC room to build out additional fabrication capacity and potentially develop new R&D and packaging facilities to support advanced process development.
TSMC’s expansion aligns with the US government’s push for semiconductor self-sufficiency, as part of the CHIPS and Science Act, and supports the ongoing global effort to decentralize chip production from East Asia.
If the company maintains its current timeline, TSMC’s N2 production in Arizona could begin as early as 2026, with subsequent upgrades to A16 by the end of the decade. This expansion not only strengthens TSMC’s global presence but also marks a pivotal step in bringing leading-edge semiconductor manufacturing back to the United States.
With the US now accounting for a significant portion of TSMC’s total revenue, the decision to expand domestically reflects both market demand and strategic necessity. The next few years will reveal whether TSMC can match the scale and efficiency of its Taiwan operations within American borders.
