As Apple seeks to re-shore more chip production, TSMC invests an additional $20 billion in its Arizona plants even while Intel allegedly ramps up test production.

US manufacturing of Apple processors was already increasing with Intel reportedly conducting a test run of iPhone and Mac chipsets, but now TSMC has approved $20 billion more for its Arizona Fab 21 facility. It's all because of both political pressures worldwide, and global shortages leading to more processor plants being needed.

According to TechPower, the decision to increase the Arizona investment included the possibility of TSMC increasing it still further in future. The confirmation of the $20 billion may be new, though, but it also fits a report by Nikkei Asia in December 2025 that said TSMC would be moving chipmaking tools into its second Arizona plant around summer 2026.

But that report and this new confirmation also fits how TSMC's CEO C. C. Wei has previously said that the company needed to accelerate its US expansion by "several quarters." Its second plant, for instance, was originally expected to go fully online by 2028.

According to CPG, overall the TSMC Arizona Fab 21 factory consists of 3.5 million square feet of space, built out over 1,100 acres. It is believed to be producing 90,000 to 100,000 4-nanometer wafers.

TSMC has reportedly said that Apple will purchase over 100 million chips made at Fab 21, by the end of 2026.

Politics and economics

It's not coincidence that TSMC is doing this as Apple is signing deals with Intel. Alongside the global shortage of chips because of exponential demand from AI firms, there are also trade tensions.

That's been most clear with the situation between the US and China, especially under the current American administration. But as the CIA privately briefed Tim Cook, there are reasons to fear a Chinese invasion of Taiwan by 2027.

The vital importance of TSMC to the world's processor supply, though, has up to now given Taiwan what's been called a silicon shield. The belief is that were China to invade, the US would back Taiwan because it's so important to the American and global economy.

Building manufacturing plants in the US will not significantly replace the quantity of processors made in Taiwan. That's especially true since it's repeatedly reported that chips will have to go back there to be completed.

But it does strengthen TSMC's ties to the US, and does so during a time when there is great pressure to reshore manufacturing.

There's an argument that Apple is now buying processors from Intel because Trump's administration owns a share of that firm. Similarly, there is an argument that TSMC's expansion in Arizona is politically motivated.

This is actually already just the latest increase, too. Back in 2020, TSMC announced that it would open a $12 billion factory in Arizona. Then in 2024, before that first plant had even opened, the company upped its investment to $40 billion.

That was a move to add a second fabrication plant, and still later, TSMC added a third. For comparison, TMSC currently operates 11 plants in Taiwan that accounts for about 60% of Apple's chip needs.