With the world watching, TSMC has unveiled its board meeting decisions. According to its press release, the chip giant has greenlit a massive US$17 billion investment to boost production capacity.

Reports hinted that TSMC might unveil plans for a third Arizona fab, a potential fourth fab, or its first advanced packaging plant after the board meeting. However, no updates have been confirmed yet.

According to TSMC, to meet long-term capacity plans based on market demand forecasts and TSMC’s technology development roadmap, the board approved capital appropriations of approximately US$17,141.40 billion for the following purposes:

• installation and upgrade of advanced technology capacity
• installation and upgrade of advanced packaging
• mature and/or specialty technology capacity
• fab construction, and
• installation of fab facility systems.

According to another report by MoneyDJ, there is speculation that TSMC may speed up or expand investments due to potential tariffs on Taiwanese semiconductors. Industry sources cited by MoneyDJ suggest that TSMC’s second Arizona fab, featuring 3nm, will likely progress ahead of schedule, providing an ideal temporary response to U.S. pressures.

According to the report, TSMC’s second Arizona fab is expected to begin equipment installation in mid-2026, with mass production expected by 2027 to meet local demand.

Notably, this progress would exceed TSMC’s projections, which expect the second plant to start 3nm and 2nm production in 2028, with a third plant potentially featuring 2nm and A16 by the late 2030s.