TSMC to deploy $20B into Arizona subsidiary as chip giant expands Phoenix fab site

TSMC's board approved the $20 billion "capital injection" into TSMC Arizona as part of the company’s overall $165 billion investment in its fab site.

BY AMY EDELEN/PHOENIX BUSINESS JOURNAL

May 16, 2026, 6:31 AM

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Taiwan Semiconductor Manufacturing Co. is set to deploy $20 billion into its Arizona subsidiary as the chip giant moves forward with building out its massive north Phoenix fab site.

TSMC’s board on May 12 approved the $20 billion “capital injection” into TSMC Arizona as part of the company’s overall $165 billion investment in its fab site, according to a regulatory filing.

To meet long-term capacity plans and forecasted market demand, TSMC’s board also approved $31 billion in capital appropriations for fab construction, and installation of advanced technology capacity and facility systems across its global subsidiaries.

The move comes as TSMC earlier this year increased its annual capital expenditures from $52 billion to $56 billion to boost N3 capacity and support a multiyear pipeline of demand for 3 nanometer chips, which are used in smartphones, AI applications and high-performance computing.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.