TSMC Begins 4nm Production in Arizona, a First for U.S. Advanced Chips

TSMC's Fab 21 in Phoenix, Arizona began volume production of 4-nanometer chips using its N4P process in late 2024 — the first time chips at this technology level were manufactured on U.S. soil, with yields comparable to TSMC's Taiwan operations. The milestone was symbolically marked at the fab's December 2022 opening ceremony attended by President Biden, Apple's Tim Cook and Nvidia's Jensen Huang.

The $65 billion complex — the largest greenfield foreign direct investment in U.S. history — received $6.6 billion in CHIPS Act grants plus $5 billion in loans. Apple, AMD and Nvidia are among the first customers; Apple reported receiving "tens of millions" of Arizona-made chips in 2025. TSMC later raised its total U.S. commitment to $165 billion, expanding the site to a six-fab "gigafab" with advanced packaging and an R&D center, targeting about 30 percent of its 2nm-and-beyond capacity in Arizona.

The ramp was not without pain: construction costs ran far above Taiwan levels, skilled-labor shortages delayed timelines, and chips made in Arizona cost more than their Taiwan-made equivalents. Still, TSMC CEO C.C. Wei called the geographic flexibility customers valued "very, very strong," and the fab stands as the anchor of Washington's effort to rebuild domestic leading-edge manufacturing.

Source: TSMC earnings call via Gizmochina, January 2025; TSMC Arizona project records. Reference: TSMC begins 4nm chip production in Arizona — Gizmochina