Leading Taiwanese semiconductor manufacturer TSMC is set to begin moving equipment into its Fab 21 phase 2 in Arizona during the third calendar quarter of 2026, from July to September, according to Nikkei sources. The company aims to start mass production of 3nm chips at the facility in 2027, advancing several quarters from the original 2028 schedule.

TSMC confirmed that construction of the Arizona Fab 21 phase 2 was completed in 2025. Following the completion of the building and its mechanical, electrical, and plumbing systems, internal infrastructure such as elevators and HVAC systems will be installed. Environmental qualification—including checks on temperature, pressure, and humidity—will precede the relocation of production equipment.

Installation and tuning of the first batch of tools, including high-end DUV and EUV lithography machines, will take months, though initial production volumes are expected to be limited. Once operational, the fab will enable TSMC to expand its U.S. 3nm chip output significantly.

In parallel, TSMC commenced construction of Fab 21 phase 3 in Arizona in April 2025. This phase will support 2nm and 1.6nm-class chip production, with the company aiming to accelerate completion to bring advanced process technology online ahead of schedule.

"With strong collaboration and support from leading U.S. customers as well as federal, state, and local governments, we are accelerating our capacity expansion in Arizona," TSMC CEO C.C. Wei said during the October 2024 earnings call. "We are making tangible progress on our plans and preparing to implement N2 and more advanced technologies in response to growing AI-related demand."