# TSMC manufacturing and investment expansion > Live situation record from CLSTR: https://clstr.news/situations/tsmc-manufacturing-and-investment-expansion > Updated: 2026-09-11T01:32:38.000Z. Sources: 20. Developments: 5. Taiwan Semiconductor Manufacturing Co. (TSMC) is advancing its manufacturing capabilities and physical infrastructure. In Arizona, the company has expanded its total pledged investment to $265 billion, following a recent $100 billion announcement. These operations, focused on fabrication, packaging, testing, and R&D in North Phoenix, reported NT$45 billion in second-quarter sales—a 145% year-over-year increase. Net profitability margins at these facilities, excluding government subsidies, stabilized at 38% in mid-2026, marking a recovery from 2025 losses. TSMC has completed the development and validation of its 1.6-nanometer A16 manufacturing process, with mass production scheduled for the fourth quarter of 2026. This angstrom-class technology utilizes a “Super Power Rail” (SPR) method involving Vertical Backside Contacts to move power delivery lines to the back of the wafer. Compared to the 2nm process, the A16 node is projected to provide an 8% to 10% increase in computing speed and transistor density, while reducing power consumption by 15% to 20%. To support these advancements, TSMC has increased its 2026 investment budget to between $60 billion and $64 billion, with Nvidia reportedly making early reservations for AI GPU capacity. Looking beyond A16, TSMC is accelerating its 1.4nm (14A) technology roadmap. The company may begin trial production of the 1.4nm process in April 2027, with mass production expected in the second half of 2027—approximately one year earlier than previous projections. This transition involves an estimated $49 billion investment. In Taiwan, construction is progressing at a new Taichung facility, where the first factory’s steel frame is complete and expected to finish in early 2027. The site is planned to house four factories, with the second facility, P2, projected for completion in October 2027. While the first two factories progress rapidly, the third has received construction licenses, and the fourth is still undergoing the permitting process. ## Claims - TSMC is accelerating its 1.4nm chip production roadmap. (corroborated by 4 sources) - Trial production for the 1.4nm node in Taichung could begin in April 2027. (corroborated by 4 sources) - Mass production is expected to start in the second half of 2027. (corroborated by 4 sources) - The 1.4nm production timeline is approximately one year ahead of the original 2028 schedule. (corroborated by 4 sources) - The Taichung complex will consist of four factories. (corroborated by 4 sources) - The second factory, P2, is expected to be completed by October 2027. (corroborated by 4 sources) - The 1.4nm production node is also known as the 14A node. (corroborated by 2 sources) - Investments for the 1.4nm production process are estimated at $49 billion. (single source) ## Timeline ### 2026-09-11: TSMC accelerates 1.4nm chip production timeline TSMC is accelerating its 1.4nm chip production timeline, with trial production in Taichung expected by April 2027 and mass production in the second half of 2027, a year ahead of previous estimates. 4 sources. https://clstr.news/cluster/tsmc-targets-14nm-chip-trial-production-by-april-2027 ### 2026-08-30: TSMC completes A16 1.6nm process development for 2026 production TSMC has verified its 1.6nm A16 manufacturing process, targeting mass production in Q4 2026. The company is increasing its 2026 investment budget amid high demand for AI chips. 5 sources. https://clstr.news/cluster/tsmc-completes-a16-16nm-process-development-for-2026-production ### 2026-08-21: TSMC completes 1.6nm chip process development, targets 2026 production TSMC has developed its 1.6nm (A16) chip process, aiming for mass production in Q4 2026. The technology promises up to 20% lower power consumption and 10% faster speeds via backside power delivery. 5 sources. https://clstr.news/cluster/tsmc-completes-16nm-chip-process-development-targets-2026-production ### 2026-08-19: TSMC to begin mass production of 1.6nm A16 process in late 2026 TSMC plans to begin mass production of its 1.6nm A16 manufacturing process in Q4 2026, aiming to maintain its semiconductor leadership over Intel and Samsung. 4 sources. https://clstr.news/cluster/tsmc-to-begin-mass-production-of-16nm-a16-process-in-late-2026 ### 2026-08-17: TSMC expands Arizona investment to $265 billion TSMC is expanding its Arizona presence with a total commitment of $265 billion, driving significant regional growth and improving profitability at its U.S. manufacturing facilities. 2 sources. https://clstr.news/cluster/tsmc-expands-arizona-investment-to-265-billion --- Cite as: TSMC manufacturing and investment expansion. CLSTR, https://clstr.news/situations/tsmc-manufacturing-and-investment-expansion