TSMC starts 4-nanometre chip production in Arizona

Advanced four-nanometre chips are now being produced in Arizona for US customers by TSMC, marking a first for the country.

TSMC reported a 60% year-on-year profit jump in Q1 2025, driven by strong AI chip demand despite weaker smartphone sales and looming tariff threats.

Taiwan Semiconductor Manufacturing Company (TSMC) has started producing advanced four-nanometre chips in Arizona, marking a significant achievement for US semiconductor manufacturing. Commerce Secretary Gina Raimondo described the development as a historic first for the nation, with production quality matching TSMC’s output in Taiwan.

TSMC’s Phoenix facility received a $6.6 billion government grant to support chip production, alongside up to $5 billion in low-cost loans. The investment is part of a broader initiative to strengthen domestic chip production under a $52.7 billion programme established in 2022.

The company plans further expansion in Arizona, with a second fab producing two-nanometre chips by 2028 and a third fab by 2030. Raimondo aims for the US to produce 20% of the world’s advanced logic chips by the end of the decade.

Amkor Technology was also awarded $407 million to support a $2 billion semiconductor packaging facility in Arizona. Apple will be a major client, with its chips produced nearby at TSMC’s plant.