- TSMC’s Arizona P2 plant, using 3-nm tech, targets production in 2027.
- US wafer prices to rise over 10%, global prices up 3-5% in 2026.
- Taiwanese firms Han Tang, Fanxuan benefit from prior Arizona project experience.
Taiwan Semiconductor Manufacturing Company has begun constructing its second Arizona facility, P2, ahead of schedule in April 2025, aiming to meet rising US customer demand for advanced semiconductor production. The plant will leverage TSMC’s cutting-edge three-nanometer (3 nm) process, with equipment installation set to start by September 2026 and full production in 2027. This hastened schedule sees a two-year construction that has been accelerated by the rising wages and US trade policies such as tariffs.
The P2 factory is the second plant in Arizona, after P1, which is expected to support the US supply chain. The Taiwanese engineering companies which have contributed to P1, like Han Tang and Fanxuan, were well placed to tap their previous experience, and market analysts are expected the companies to get a better long-term profit.
Additionally, suppliers of specialty gases and chemicals, including Shangpin and Shengyi, are seeing increased orders from North America, attracting positive attention from industry analysts.
As TSMC grows in the US, Taiwan will continue to play a crucial role to the company at least in advanced packaging such as Chip-on-Wafer-on-Substrate (CoWoS). In spite of TSMC announcing construction of not one but two advanced packaging plants in the US, the first, AP1, cannot begin until Q3 2026.
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Most of TSMC’s US plants are unlikely to reach full capacity before 2029. Meanwhile, US-produced wafer prices are projected to rise by over 10%, with global wafer prices expected to increase by 3% to 5% in 2026, fueled by AI demand and rising construction costs.
In Taiwan, TSMC is investing heavily, with nine new factories and 11 production lines under development. The Kaohsiung F22 plant, focused on 2-nm technology, is set for relocation in Q3 2025, with a third facility expected to be completed by Q1 2026, reinforcing TSMC’s commitment to its home market.