TSMC has allocated an additional $20 billion to expand its facility in Phoenix, Arizona, at the Fab 21 site. According to the latest TSMC board resolution meeting, TSMC Arizona, a subsidiary of TSMC, will receive up to $20 billion for now, with the possibility of further capital injections in the future. This resolution supports the expansion of TSMC's Fab 21 site with additional land purchases, expensive EUV equipment, and more semiconductor manufacturing tools. The company has already invested about $65 billion in ongoing Arizona projects and pledged an [additional $100 billion](https://www.techpowerup.com/333541/tsmc-intends-to-expand-its-investment-in-the-united-states-to-ususd-165-billion-to-power-the-future-of-ai) in capital expenditure on top of that. The total TSMC Arizona capital expenditure is projected to reach $165 billion, with parts of the additional $100 billion package being gradually unlocked, as seen in today's board meeting resolution.

Interestingly, TSMC Arizona reportedly generated about $514 million in profit last year, its first year of operations. Given TSMC's gross margins of about 66%, this suggests that Fab 21 generated approximately $1.5 billion in revenue. TSMC does not explicitly separate revenue streams from each fab publicly, but these numbers are impressive considering the fab has only been operational for a year. Typically, a fab's first-year performance is not this strong, but it seems TSMC remains an industry leader in this area as well.[](https://www.techpowerup.com/img/jq1gpJA4vZWVZLef.jpg)[Read full story](https://www.techpowerup.com/348976/tsmc-allocates-usd-20-billion-for-arizona-fab-expansion-but-faces-challenges)