On Tuesday, TSMC projected an annual revenue of $10 billion upon the commencement of operations at its two upcoming chip fabrication plants in Arizona. The Taiwanese semiconductor manufacturer revealed plans to expand its initial investment in the facilities, increasing it to $40 billion. The first fabrication facility is expected to be operational by 2024, with the adjacent second facility producing advanced chips by 2026. A “tool-in” ceremony, attended by US President Joe Biden and CEOs of major TSMC customers, marked the symbolic initiation of equipment installation in the new $12 billion facility.

TSMC Chief Executive Mark Liu stated, “Upon completion of both fabs, we will manufacture over 600,000 wafers a year, generating a yearly revenue of $10 billion, and contributing to our customers’ product sales exceeding $40 billion annually.” These projects are anticipated to create 31,000 construction jobs and an additional 13,000 high-paying, high-tech jobs, including 4,500 direct TSMC employees.

Major TSMC customers, including Apple, Nvidia, and Advanced Micro Devices, expressed confidence that their chips would be produced in the new Arizona plants. Apple CEO Tim Cook emphasized the collaboration with TSMC in manufacturing chips that power their global products, anticipating an expansion of this partnership as TSMC establishes a stronger presence in America. AMD CEO Lisa Su committed to being a significant customer for both fabs, pledging close collaboration with TSMC and the entire ecosystem.

The first factory, named Fab 21, is situated in the northern part of Phoenix, surrounded by brown hills and open land. With at least a dozen major cranes still in place, TSMC executives, led by founder Morris Chang, 91, along with CEOs of key machine suppliers and Apple, Nvidia, and AMD, celebrated the factory’s opening against the backdrop of the new TSMC facility, featuring a flag and a drape reading “A Future Made in America Phoenix, AZ.” The occasion was marked with a toast using sparkling wine.