TSMC Expands Global 3-Nanometer Capacity to Meet AI and HPC Demand

TSMC’s 3-nanometer process is critical to AI accelerators, smartphones and high-performance computing chips. As Samsung seeks foundry orders by bundling services with memory and Intel emphasizes U.S. manufacturing, TSMC is keeping Taiwan at the center of research, development and mass production while extending capacity to the United States and Japan. The strategy is designed to strengthen supply-chain resilience, meet customers’ local needs and prevent orders from shifting to rivals when its facilities are running at full capacity.

TSMC unveiled its global 3-nanometer plan on April 16. A new Tainan fab is expected to begin mass production in the first half of 2027, followed by the company’s second Arizona fab in the second half of that year and its second Kumamoto fab in 2028. TSMC will also convert 5-nanometer equipment in Taiwan for 3-nanometer production. On May 12, its board approved a further $31.2843 billion capital budget and authorized an investment of up to $20 billion in TSMC Arizona.