On the heels of media reports that Taiwan Semiconductor Manufacturing Co. was considering expanding in Arizona, the company confirmed Tuesday that it will build a second fab in north Phoenix to produce 3-nanometer chips by 2026 and significantly increase its investment in the state.

To mark a significant milestone in Phoenix, TSMC held a tool-in ceremony on Tuesday for the arrival of its first batch of production equipment at the Arizona fab, where President Joe Biden, TSMC's founder Morris Chang, Apple CEO Tim Cook, Micron Technology CEO Sanjay Mehrotra and numerous industry and elected officials were in attendance.

The company's second fab is expected to increase the semiconductor giant's investment from the initial $12 billion to about $40 billion, one of the largest foreign direct investments in Arizona and U.S. history, according to the White House. This is more than what sources previously said would total a $35 billion investment in Phoenix.

TSMC also revealed its plans to develop even more advanced chips than originally proposed at its first facility in north Phoenix, which will produce 4 nanometer chips instead of 5 nanometers by 2024. The 3 nanometer chips are currently the most advanced on the market.

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By Audrey Jensen - Reporter, Phoenix Business Journal