"To Meet Client AI Demand" TSMC Secures Additional Land for Arizona Plant

Revealed at TSMC Annual Shareholders' Meeting

"Construction Progress at U.S. Plant Is Going Very Smoothly"

This Year's Capital Expenditure to Increase by 37% Compared to Last Year

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest foundry, announced that it has acquired additional land near its plant in Arizona, United States, to respond to the surging demand for artificial intelligence (AI) investments from major clients.

TSMC fab located in Hsinchu Science Park, northern Taiwan. Photo by Reuters Yonhap News

According to Taiwanese media outlets, including China Times and United Daily News, on June 5, TSMC Chairman Mark Liu said at the shareholders' meeting held the previous day in Hsinchu, northern Taiwan, that the company has secured a plot of land near its Phoenix, Arizona Fab 21, equivalent in size to the previously acquired site.

He explained that this would sufficiently support industrial growth and expansion over the next ten years. However, he also projected that, in the long term, land and production facilities for future plant construction would still be insufficient. Chairman Liu stated, "The key factor in deciding overseas land acquisition policies is client demand," adding, "Currently, construction progress at the Arizona plant is going very smoothly."

Previously, in April, TSMC raised its annual revenue outlook and announced plans to increase capital expenditures (Capex) this year to meet unrelenting demand. This year's Capex is expected to reach about 56 billion dollars, a 37% increase compared to last year's 40.9 billion dollars.

However, he pointed out that challenges remain in operating the U.S. plant, such as shortages of electricity, water, and construction manpower. Currently, 74% of TSMC's revenue is generated from advanced processes. He also identified supply chain bottlenecks in electricity, materials, and advanced packaging as the most pressing issues.

When asked about Nvidia CEO Jensen Huang's visit to Korea, Chairman Liu stated that the purpose was to secure memory chips, noting, "Korea is the world's largest memory producer, while TSMC is the largest manufacturer of logic chips." Nonetheless, he expressed confidence that as long as TSMC remains in Taiwan, the Taiwanese semiconductor industry will stay at the forefront.

This content was produced with the assistance of AI translation services.