
TSMC's global expansion: Eyes Arizona as global semiconductor hub; planning to establish a global gigafab cluster
Taiwan Semiconductor Manufacturing Co. (TSMC) is advancing its strategy to meet increasing global demand for advanced semiconductors used in smartphones, artificial intelligence (AI), and high-performance computing (HPC).
At an investor conference on Thursday, TSMC chairman CC Wei highlighted Arizona's growing strategic importance within the company's global operations. He said the state is set to become a critical hub for TSMC's most advanced manufacturing technologies.
The company's first Arizona fab began mass production in the fourth quarter of 2024, using 4-nanometre process technology. Wei further stated that the facility's yield rate is already on par with TSMC's similar fabs in Taiwan.
Construction of the second Arizona fab, which will produce 3nm chips, the most advanced node currently deployed in Taiwan, has been completed. Due to strong customer demand, production is now scheduled to commence several quarters ahead of the original timeline.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Turn Nervous Into Natural – Book a Free Demo Today
Planet Spark
Book Now
Undo
Meanwhile, groundwork has begun for a third fab in the state, which will use 2nm and A16 process technologies. Wei confirmed that demand for AI-related chips remains particularly robust.
TSMC's total investment across the three Arizona fabs stands at $65 billion. The company has also pledged an additional $100 billion over the next few years to deepen its US presence. This includes plans for three more fabs, two integrated circuit (IC) assembly plants, and a dedicated research and development centre.
These projects are expected to transform Arizona into a self-sustaining semiconductor manufacturing hub, with the state's facilities eventually accounting for roughly 30% of TSMC's most advanced chip production, those using 2nm and newer technologies.
TSMC's global expansion plans extend beyond the US. In Japan, its first fab in Kumamoto began mass production in late 2024, producing chips using 12nm, 16nm, and 28nm processes.
A second fab, originally scheduled to break ground in early 2025 and begin operations in late 2027, will manufacture 6nm, 7nm, and 40nm chips.
However, Wei noted a slight delay in the project due to traffic infrastructure issues. Construction is now expected to start later this year, depending on local progress.
In Germany, TSMC is also progressing smoothly with the construction of a fabrication facility in Dresden, which will focus on specialty semiconductor technologies.
Back in Taiwan, the company continues its major domestic expansion. It plans to build 11 new wafer fabs and four advanced IC assembly facilities over the coming years. Current projects in Hsinchu and Kaohsiung are scheduled to begin mass production using 2nm process technology later this year.
Despite the ambitious overseas expansion, TSMC's chief financial officer Wendell Huang cautioned that the company will face short-term financial pressures. He projected a 2–3 percentage point dip in gross margins initially, with a broader 3–4 percentage point decline expected over the next five years due to the higher operating costs associated with international sites.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
21 minutes ago
- Time of India
Lenskart's files Rs 7,500-8,000 cr IPO papers with Sebi
BENGALURU: Lenskart Solutions is gearing up for one of the largest consumer-tech listings of the year, with its initial public offering (IPO) expected to raise between Rs 7,500 crore and Rs 8,000 crore, people aware of the matter said. The final size will depend on valuations at the time of listing. The company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on Tuesday. The IPO consists of a fresh issue of shares worth Rs 2,150 crore and an offer for sale (OFS) of up to 13.23 crore shares by existing investors and promoters. A pre-IPO placement of up to Rs 430 crore has also been proposed, which could reduce the fresh issue size. Proceeds from the fresh issue will be used for the expansion of company-owned (CoCo) stores in India (Rs 272.62 crore), lease-related payments (Rs 591.44 crore), technology and cloud infrastructure (Rs 213.38 crore), and brand marketing (Rs 320.06 crore). The remainder will be allocated for inorganic acquisitions and general corporate purposes. As of March 31, 2025, Lenskart operated 2,723 stores globally, including 2,067 in India and 656 overseas. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Remember Him? Take A Deep Breath Before You See Him Now The Noodle Box Undo by Taboola by Taboola The company sold 27.2 million eyewear units in FY25, up from 21.2 million in FY24 and 15.9 million in FY23. Annual transacting customer accounts rose from 7.7 million in FY23 to 12.4 million in FY25, while its paid membership program, Lenskart Gold, reached 6.77 million members in India. Financially, the company swung from losses to profitability in FY24. In FY25, Lenskart reported revenue of Rs 6,653 crore, up from Rs 5,428 crore a year ago. Net profit rose more than fivefold during the same period, from Rs 59 crore to Rs 297 crore, driven by operating leverage and higher repeat purchases. Lenskart's apps have seen more than 100 million cumulative downloads, while its websites drew 105 million visitors in FY25. New customers, on average, purchased 3.62 pairs of glasses within two years, the filing revealed. The case of the missing degree Buried in Lenskart's DRHP is an oddly specific risk: one of its promoters, Sumeet Kapahi, who also heads global sourcing at the company, can't find his (Hons) degree or marksheets from the University of Delhi. He has emailed, written letters, and even applied through the university's online portal, but is still waiting for a response. Until then, Lenskart and its bankers have relied on the certificates he submitted for the IPO filing. The company admits there's no guarantee the university will ever send the documents, making this one of the more unusual disclosures in a multi‑thousand‑crore IPO draft. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025


Time of India
30 minutes ago
- Time of India
UBS steps up contingency planning as it tries to tame Swiss rules, sources say
ZURICH/HONG KONG, - UBS is briefing senior staff that the need to examine moving its HQ from Switzerland has grown since the government proposed new capital rules, a source with knowledge of the matter said, while another pointed to London as a favourite alternative. The Swiss government proposed reform measures in June that envisage that UBS - as Switzerland's sole remaining global bank with a balance sheet about double the size of the economy - should capitalise its foreign subsidiaries by 100% rather than 60% currently, to cover potential losses abroad. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Orthopedic Knee Surgeon: Suffering From Pain After Age 50? Do This Every Morning Wellnee Undo That could mean the bank has to carry an extra $24 billion in capital. A review by UBS looking at contingency planning has concluded that London is one of the best options for an alternative location should the bank try and move, one of the sources said. Live Events Britain has similar rules on foreign subsidiaries but a third source said authorities outside Switzerland may show more flexibility. Two sources familiar with the bank's thinking said UBS was also warning internally that it could be vulnerable to a future takeover by a foreign rival if it were weakened by the rules. The sources spoke on condition of anonymity because the discussions are confidential. UBS, which is due to release second quarter earnings on Wednesday, has intensified lobbying with parliament since June 6 to push back against the proposed capital changes, two lawmakers said. Even insiders at the Zurich-based wealth manager say UBS - whose leadership argues it came to the rescue when it bought Credit Suisse in a government-engineered deal - does not intend to leave Switzerland. All agree that UBS's principal objective is to soften the regulations. Even so, UBS executives think the government's demands mean that if no compromise is reached, it may need to respond radically, one source familiar with the lender's thinking said, pointing to a possible relocation. UBS told Reuters it would engage in the consultation process for the new rules while evaluating appropriate measures "to address the negative effects that extreme regulations would have on its shareholders." Its Swissness was a "differentiating element", it said, adding that UBS - which has been running an advertising campaign themed "A bank like Switzerland" - wanted to be based in Switzerland "leveraging the mutually beneficial relationship." Switzerland's finance ministry declined to comment on what it said were internal UBS decisions. FINMA, the Swiss regulator, declined to comment. UBS earlier this year started warning about the possibility of shifting its headquarters, but the latest deliberations are reported here for the first time and highlight a political tug-of-war between UBS, led by CEO Sergio Ermotti, and the government about what is best for the bank and for Switzerland. Representatives for the UK Treasury, Bank of England and the Financial Conduct Authority declined to comment. Swiss Finance Minister Karin Keller-Sutter said in June that the new rules would make it more costly for the bank to grow abroad but that she hoped UBS would stay in Switzerland. DIFFICULT MOVE As for any large bank, relocation would be costly and difficult and industry insiders say Switzerland's global renown as a wealth management centre has been central to UBS' business model. Pressure is, however, growing on the bank. UBS's shares have underperformed rivals, gaining 7% in 2025 against the wider sector's 37% as investors fear the new rules will impede shareholder payouts and growth prospects. One UBS shareholder, speaking on condition of anonymity, told Reuters it would be difficult for the bank to attract investors if the capital rules talks dragged on for three or four years without the bank making progress in softening them. The ball "is in UBS's court" to find a solution, the investor said. Under the proposed capital requirements, UBS's Common Equity Tier 1 capital ratio, a key measure of bank capital, of 14.3% could reach 17%. That would put it above rivals like JPMorgan at 15.8%, Morgan Stanley at 15.7%, and Goldman Sachs at 15.3%, the government estimated in June. Outside experts say like-for-like comparisons are difficult. PERSUADING INVESTORS Switzerland's parliament is not due to receive a draft law on the rules until well into 2026. But UBS executives want to reassure investors by early 2026 they can soften the final legislation, two of the sources said. If it cannot placate investors coming into 2026, UBS may try to repatriate more than the $5 billion in capital it already plans to return to its parent bank, which could eventually fund payouts, analysts say. UBS's efforts have already yielded fruit. Last month a parliamentary committee backed a motion to make the government send all the new banking rules to parliament instead of issuing some directly. "We have to find the right balance between capital that minimises risks but also maintains UBS's competitiveness," said Beat Walti, the lawmaker who proposed the amendment.


Time of India
30 minutes ago
- Time of India
Pete Hegseth in hot water: Pentagon boss told to shape up or face the axe, sources say
Defense Secretary Pete Hegseth has been warned in private to change his behavior or he could be removed from his job. The warning came after a series of scandals involving Hegseth that have embarrassed the Pentagon and the White House. One major controversy started when Hegseth fired three Pentagon staffers this spring — Darin Selnick, Dan Caldwell, and Colin Carroll — accusing them of leaking information, but without offering solid proof, say Politico sources. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science healthcare Others CXO Management Operations Management Leadership Finance MCA Product Management Artificial Intelligence PGDM Degree Project Management others Public Policy Healthcare Digital Marketing Cybersecurity MBA Data Analytics Technology Design Thinking Data Science Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIT Madras CERT-IITM Advanced Cert Prog in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details Officials inside and outside the Pentagon were so concerned, they held an 'intervention' with Hegseth. White House officials and aides to Vice President JD Vance even began their own investigation to find out if the fired staffers were actually responsible for leaks — but they found no evidence. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo ALSO READ: Bryan Johnson plans to shut down multi-million dollar anti-aging startup blueprint amid scaling and credibility challenges Hegseth's team couldn't provide any clear proof that the three men leaked anything, which made the situation worse. A person close to Hegseth told Politico, 'There's going to be more shoes to drop all around,' suggesting more problems or scandals might come out soon. Live Events More scandals keep coming Another major scandal involved a Signal group chat, where members of the Trump administration, including Hegseth, discussed plans to bomb Houthi rebel targets in Yemen. The Signal chat accidentally included Jeffrey Goldberg, Editor-in-Chief of The Atlantic, who was not supposed to be there, which made the situation even more embarrassing, as stated by Politico report. Hegseth also reportedly tried to stop U.S. military aid from reaching Ukraine, even though that decision was not his to make. President Trump later reversed Hegseth's decision and pretended he didn't know who had stopped the aid, even though Hegseth was sitting right next to him during a press interaction. Last week, the Daily Mail reported that several Pentagon officials now want Hegseth to be removed because of all the controversies. The Washington Post also reported that the Signal chat included messages that may have contained classified U.S. government information, which could lead to serious consequences, as per the report by Politico. Some people close to Hegseth are now urging him to apologize to the three aides he fired, in hopes of calming down the crisis. One source told Politico: 'If there's any chance of Pete resetting and ensuring that whatever time he has left in this position is well served, he's got to. Otherwise Pete is just doubling down on the lie.' White House still supports him According to the reports, despite everything, the White House and Pentagon are still standing by Hegseth, and have not taken steps to remove him yet, multiple outlets confirm. Pentagon spokesperson Sean Parnell told the Daily Beast that under Trump and Hegseth, military recruitment is breaking records and that Hegseth is 'reviving the warrior ethos' and putting 'America First.' ALSO READ: Texas lake hits 100% capacity after 15 years — officials urge caution amid flooding fears White House spokesperson Anna Kelly told the Daily Beast that President Trump has 'full confidence' in Hegseth, and praised his leadership of the Department of Defense. Kelly also highlighted that Hegseth played a 'critical role' in Operation Midnight Hammer, a military mission that bombed Iranian military targets. She said Hegseth is prioritizing warfighters, eliminating terrorists, and restoring 'common sense' to the U.S. military. However, not everyone agrees with the praise — one anonymous critic told Politico: 'If they want to give Pete a pass—fine. Because at the end of the day, he's going to keep f---ing up.' Vice President JD Vance's office did not respond when The Daily Beast reached out for a comment on the situation, as per the report by Politico. FAQs Q1. Why is Defense Secretary Pete Hegseth facing calls to be fired? Pete Hegseth is facing calls to be fired because of scandals involving wrongful firings, secret chats leaking information, and blocking military aid without proof. Q2. Is the White House still supporting Pete Hegseth as Defense Secretary? Yes, the White House says it has full confidence in Pete Hegseth and supports his leadership despite the controversies.