Apple’s manufacturing partner, TSMC, has allocated an additional $20 billion to expand its facility in Phoenix, Arizona, at the Fab 21 site, according to TechPowerUp.
According to the latest TSMC board resolution meeting, TSMC Arizona, a subsidiary of TSMC, will receive up to $20 billion for now, with the possibility of further capital injections in the future. This resolution supports the expansion of TSMC’s Fab 21 site with additional land purchases, expensive EUV equipment, and more semiconductor manufacturing tools. TSMC has already invested about $65 billion in ongoing Arizona projects and pledged an additional $100 billion in capital expenditure on top of that.
The total TSMC Arizona capital expenditure is projected to reach $165 billion, with parts of the additional $100 billion package being gradually unlocked. owever, the company faces significant challenges, including a lack of skilled labor and a tight water supply, according to TechPowerUp.
In February it was reported by AZCentral that Apple would buy more than 100 million chips from TSMC Arizona this year, upping its consumption from 2025 as the electronics maker grows its U.S. footprint.\
TSMC benefits from funding it got form the CHIPS Act signed in 2022 (which, ironically, President Trump now opposes). The legislation provides $10 billion to invest in regional technology hubs across the country and a 25% investment tax credit for expenses for manufacturing of semiconductors and related equipment. It also authorizes roughly $100 billion in spending over five years on scientific research, including more than $80 billion for the National Science Foundation.
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