TSMC Hints at Further US Investment; Chairman Says Taiwan Government Approval Needed First

TSMC previously announced a $165 billion investment in the United States. Chairman and CEO C.C. Wei today revealed potential for further investment. He stated that market momentum is strong, with customer growth in recent years being 'terrifying,' and that the US government continues to encourage TSMC to invest. However, he emphasized that when TSMC has new investment plans, it will consult with the Taiwanese government and will only announce them after receiving approval. He also reiterated that Taiwan will remain TSMC's largest production base. TSMC announced its US investment in 2022. Benefiting from strong customer demand, it revised its investment scale upward from $65 billion by an additional $100 billion, totaling $165 billion. The plan includes building six fabs, two advanced packaging plants, and one R&D center. The first fab is already mass-producing 4nm chips, and the second fab is expected to begin mass production of 3nm chips in the second half of 2027. Speaking to the media after TSMC's annual shareholders' meeting, Wei said that TSMC's advanced process production capacity is distributed between Taiwan and the US. In the US, the company initially had one piece of land and planned a $65 billion investment, later adding $100 billion to build five to six fabs. He further explained that based on long-term planning, TSMC has purchased another piece of land in Arizona, the same size as the first, stating that 'two pieces of land should be enough for TSMC's use for the next 10 years.' Wei pointed out that customers continue to grow, with growth in recent years being 'terrifying,' especially this year, prompting TSMC to accelerate production in the US. He also noted that the US federal government hopes TSMC will produce as much as possible in the US, and TSMC is moving in that direction. Regarding when a new round of additional investment might be announced, Wei stressed that when TSMC has new plans, it will discuss them with the government and will not announce them publicly until approval is granted. TSMC had previously planned for 30% of its 2nm production capacity to come from overseas fabs. Wei admitted this target is difficult to achieve, stating that it is not empty talk, but that Arizona has air pollution regulations and a shortage of construction workers. TSMC is working with the US government to solve these problems. Wei said that high-end chip production capacity in the US is far from sufficient, and even adding Taiwan's capacity cannot fully meet customer demand. Besides building fabs in the US, TSMC is also accelerating expansion in Taiwan. He said it will take 'a long time' to meet customer demand. Wei stated that factory construction in Taiwan is the fastest and most efficient, and Taiwan will remain TSMC's largest production base. He said TSMC will accelerate the construction of P3, P4, and P5 at Fab 22, investing in Taiwan without reservation. This is good for both TSMC and Taiwan, but he noted a shortage of construction workers and that work will only proceed after ensuring no safety issues.