A senior executive from Taiwan Semiconductor Manufacturing (TSM) has disclosed that the company plans to open a chip packaging facility in Arizona, USA, by 2029.

The company previously indicated during its January earnings call that it was applying for permits to build its first advanced packaging plant within its existing Arizona facility. On Wednesday, at a conference in Santa Clara, California, a TSM executive confirmed that construction of the Arizona plant has already begun.

"We are actively expanding capacity at the Arizona site," stated Kevin Zhang, Co-Chief Operating Officer and Senior Vice President of TSM. "Our plan is to establish CoWoS and 3D-IC capacity by 2029, which remains our target," Zhang said, referring to two of TSM's high-demand packaging technologies.

Companies such as Apple and Nvidia are already sourcing chips from TSM's Arizona facility. However, many of these chips currently need to be shipped back to Taiwan for the packaging stage.

Last year, Amkor Technology announced it was collaborating with Apple and Nvidia, with plans to build a packaging plant in Arizona by mid-2027 and begin production by early 2028, ahead of TSM's timeline. In 2024, Amkor Technology and TSM stated they would cooperate to introduce several of TSM's advanced packaging technologies to Arizona, though specific details have not yet been revealed.

Zhang mentioned that technical discussions between Amkor Technology and TSM are ongoing.

"We are working with them to understand what technical capabilities they can offer our customers to accelerate the production of certain products in the U.S.," Zhang said. "There are still some aspects that need to be aligned. I would say we are actively exploring various possibilities to build a diversified manufacturing footprint."