TSMC speeds up Phoenix chip expansion

The big picture: The world's chips leader has committed $165 billion to develop six fabrication plants, two advanced packaging facilities and a research and development center in north Phoenix.

The latest: Wei announced Thursday TSMC now plans to open its second Phoenix fab next year instead of in 2028. Construction of the facility is complete and tool installation will begin later this year.

• The company is working to secure permits to begin construction on its fourth fab (the third fab is already under construction) and first advanced packaging facility, he said.
• Wei also noted that TSMC recently closed on a second piece of land in Phoenix "to support our current expansion plans and provide more flexibility in response to the very strong multi-year AI-related demand."

By the numbers: TSMC's fourth quarter revenue was $33.73 billion, a 25.5% year-over-year increase and net profit soared 35%, setting a new record of $505.7 billion.

What we're watching: The U.S. Department of Commerce on Thursday afternoon announced a trade deal with Taiwan that requires Taiwanese semiconductor companies to make an additional $250 billion investment in American facilities.

• In an interview with CNBC, Commerce Secretary Howard Lutnick hinted that the deal may result in TSMC further expanding its Phoenix campus.
• "They just bought hundreds of acres adjacent to their property," Lutnick said. "I'll let them go through with their board and give them time."
• TSMC Arizona spokesperson Christine Dotts declined to comment on the trade deal or Lutnick's statement.

Editor's note: This story has been updated to include details of the U.S.-Taiwan trade agreement announced Thursday afternoon.