TAIPEI (Taiwan News) — TSMC’s second Arizona wafer plant will reportedly start 3 nm production a year early, intensifying competition with Samsung’s Texas plant as both companies ramp up advanced chip manufacturing in the US.
South Korea’s Digital Daily reported that TSMC’s first Arizona plant is already producing 4 nm chips, and the second plant is now expected to start 3 nm production in 2027, ahead of the originally planned 2028, per CNA. In addition, Samsung’s plant in Taylor, Texas, may adjust its production plan, moving from the originally planned 4 nm process to 2 nm technology.
TSMC Chair and President C.C. Wei (魏哲家) in July said that strong AI demand from clients such as Apple, AMD, Nvidia, Qualcomm, and Broadcom will accelerate progress at the Arizona facility. Wei estimated that the second plant would advance several quarters ahead of schedule.
Analyst Wang Chao-li (王兆立) told CNA that Tesla CEO Elon Musk has said the company’s upcoming AI chip, AI5, will be manufactured by TSMC’s Arizona plant and Samsung’s Texas plant. Samples and limited shipments of the AI5 chip are expected to begin in 2026, with mass production slated for mid-2027.
Wang added that Tesla’s AI5 chips will reportedly use TSMC’s 3 nm N3P process and Samsung’s 2 nm process, suggesting that TSMC’s second Arizona plant could begin production ahead of schedule in 2027. As both TSMC and Samsung expand and accelerate their US operations, competition in the American foundry market is expected to intensify.
Having Tesla contract both TSMC and Samsung provides supply flexibility, ensures ample production capacity, and reduces reliance on a single manufacturer, thereby enhancing supply chain resilience, Wang said.
The analyst said that with support from Tesla and other customers, Samsung is expanding its US presence, which could increase competition for TSMC. However, it can also help reduce TSMC's risk of being seen as a monopoly.
