TSMC brings its most advanced chipmaking node to the US yet, to begin equipment installation for 3mn months ahead of schedule — Arizona fab slated for production in 2027

TSMC is set to start moving equipment into its Fab 21 phase 2 in Arizona next summer, according to Nikkei, which cites sources familiar with the plan. Once the supporting and production tools are installed sometimes in 2027, the company will be able to start mass production of chips using its N3 technology, several quarters ahead of schedule.

TSMC will begin installation of equipment into its Fab 21 phase 2 in Arizona in the third calendar quarter — from July to September — of 2026, with the aim to start production at the facility in calendar 2027, several quarters ahead of the original schedule of 2028, if the report from Nikkei is accurate.

Construction of TSMC's Fab 21 phase 2 in Arizona was completed this year, according to the company. After the building itself, as well as its mechanical/electrical/plumbing systems, are complete, chipmakers begin to install internal infrastructure like elevators and HVACs. Once this phase is done, chip producers perform environmental qualification, and if everything — temperature, pressure, humidity — is stable, then actual production tools are moved in.

Depending on the tool, its installation and tuning take between hours and days, though high-end DUV and EUV lithography systems take significantly longer to install and tune than other machines at the fab. But in any case, it takes months to install the first group of tools, make them work in concert, and begin small-volume mass production. That said, TSMC has a chance to initiate mass production of chips on its N3 manufacturing technology in Arizona already in 2027, though volumes will be limited.

TSMC began to build its N2/A16-capable Fab 21 phase 3 in Arizona in April, 2025. The company hopes to complete this one as fast as possible to start output of its 2nm and 1.6nm-class chips in America ahead of schedule as well.

"With the strong collaboration and support from our leading U.S. customers and the U.S. federal, state, and city government, we continue to speed up our capacity expansion in Arizona," C.C. Wei, chief executive of TSMC, said at the most recent earnings call in October. "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."

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