TSMC Arizona’s facilities have emerged as a crucial element in Apple's $500 billion plan to invest in U.S. semiconductor manufacturing. In February, the tech giant, a subsidiary of Taiwan Semiconductor Manufacturing Company, announced it would allocate substantial resources to TSMC's Phoenix manufacturing complex, part of a strategy expected to create 20,000 research and development jobs across the U.S. by 2026.
Apple will also work with Hon Hai Precision Industry's Foxconn to build a 250,000-square-foot facility in Houston, but a significant portion of its investment will be directed toward semiconductor production at TSMC Arizona, where mass production of Apple chips began in January 2025.
The investment includes "a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC's Fab 21 facility in Arizona," according to Apple's February announcement. The plan is to double Apple's Advanced Manufacturing Fund from $5 billion to $10 billion, with TSMC Arizona a primary beneficiary.
‘Leading-Edge Chips on American Soil’
Apple's reinforced commitment to TSMC Arizona comes at a pivotal moment for the semiconductor manufacturer. When the company began producing 4-nanometer chips at its first Arizona fab in January, it marked a milestone for American-based manufacturers.
Apple had previously committed to sourcing chips from TSMC's Arizona operations in 2022, but the recent increased investment signals a deepening of this relationship, which will involve fabricating chips for applications such as AI, autonomous vehicles, 5G/6G, and data centers.
Steve Zylstra, president and CEO of the Arizona Technology Council, emphasized the potential impact of Apple's investment on the local technology ecosystem.
"This move is poised to bolster the high-tech sector in Arizona, particularly in areas like silicon engineering and advanced manufacturing, which are already strengths of our state's technology ecosystem,” he told the Phoenix Business Journal.
He added that Apple's decision to increase its investment at TSMC's Arizona facilities is "particularly notable," as it could "catalyze further growth in high-skilled manufacturing jobs and attract a slew of ancillary businesses, from suppliers to startups, that want to be near such an advanced operation.”
TSMC Arizona’s Growth
From an initial $12 billion investment announced in 2020, TSMC's Arizona has expanded its commitment to $65 billion for three advanced fabrication facilities. At full capacity, the three facilities are expected to employ 6,000 people, and the company already employs roughly 3,000 at the first facility.
TSMC's three-phase Arizona expansion aligns with Apple's needs for advanced chip technology. The first fab, which began production in January, focuses on 4nm chips primarily used in smartphones. The second fab, scheduled to open in 2028, will utilize N3 and N2 process technology to produce chips for data centers powering artificial intelligence applications. The third fab, planned for completion by 2030, will manufacture A16 chips and employ 2nm or more advanced future process technology.
Building a Tech Hub in Arizona
The ripple effects of Apple's investment in TSMC Arizona should extend beyond immediate semiconductor manufacturing capabilities. The north Phoenix area surrounding TSMC's campus is experiencing tremendous growth, with Mack Real Estate Group planning a $7 billion, 2,300-acre mixed-use development dubbed Halo Vista. This project, which has been called a “city within a city,” is expected to become one of the largest employment corridors in Arizona, featuring 30 million square feet of commercial building space — including manufacturing and engineering hubs — alongside 9,000 residential units.
Richard Mack, CEO of Mack Real Estate Group, highlighted the importance of TSMC's presence for the development in an interview with Phoenix public radio. "Making TSMC happy here and increasing their productivity is so important for the U.S. to demonstrate that re-shoring works and that we can deliver domestically the most important products in the world,” he said.
The team behind Halo Vista visited Taiwan to study how TSMC interacts with its community and environment in other settings. "We did go to Taiwan to see the area in which the TSMC factories are located right now and to kind of learn from what was going on there and to think about how things are different in the U.S.," said Mack.
"Our vision is for chip designers and engineering students, not just suppliers and manufacturers, to co-locate here, to create a value-added ecosystem beyond just what it takes to build chips, and that's how we're going to create more value in the Phoenix economy," he continued.
Rose Castanares, president of TSMC Arizona, emphasized the company's dedication to creating a strong workforce pipeline to support these advanced manufacturing operations. "One of the top considerations in TSMC’s decision to expand here was the opportunity to tap a local and diverse talent pipeline and collaborate with a world-class U.S. education system,” she said when explaining the company’s decision to expand in Arizona.
TSMC has invested $5 million in apprenticeship programs to develop the semiconductor technicians needed for its facilities. The company is working with Arizona State University, Maricopa Community College, Grand Canyon University, Northern Arizona University, and Western Maricopa Education Center to develop curriculum and training pathways.
"We are deeply committed to creating job opportunities for local Arizonans," Castanares said. "Our newest technician apprentices will get the support and training they need to thrive in their new careers and help us make the most advanced semiconductor technology in the United States.”
