TSMC accelerates overseas manufacturing: Arizona readies 2 nm and A16; Japan builds second JASM fab for 6/7 nm and 40 nm. Advanced packaging tops 10% revenue.
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During its quarterly report, TSMC’s chairman and president Wei Zhejia said the company is sharply accelerating the build-out of its overseas manufacturing footprint.
In the United States, at the TSMC Arizona site, the company is preparing to launch production using 2 nm and even more advanced process technologies. To make that possible, TSMC is acquiring a new parcel of land next to its existing fabs, keeping expansion options open and positioning itself to meet surging global demand for AI chips. The move reads as a hedge for flexibility at a time when appetite for compute shows little sign of easing.
In Japan, the company announced the start of construction on a second JASM fab. It will produce both modern 6/7 nm solutions and time-tested 40 nm chips. Launch timelines will be adjusted in line with market conditions and customer requests—an intentionally pragmatic, demand-driven approach.
According to a previously published roadmap, it is the third Arizona fab that will be the first to bring 2 nm and A16 processes into production. In Japan, TSMC will focus on mid-tier nodes, maintaining a balance between cutting-edge technology and high-volume orders—a combination that tends to anchor supply for a broad swath of applications.
Wei also noted that building an AI data center with a capacity of 1 GW requires around $50 billion in investment. At the same time, the share of advanced packaging technologies in TSMC’s revenue surpassed 10% for the first time, underscoring their strategic importance to both the company and the wider industry. That milestone helps explain why advanced packaging has moved from supporting role to the center of the business conversation.