Early Leaders in America’s $3T Manufacturing Construction Push

TL/DR –

Manufacturing facilities are experiencing a boom in development in the US, driven by incentive programs and tax breaks. Roughly two dozen facilities are currently under construction around the country, representing around $500bn in committed capital. Avison Young is tracking 124 projects that have been proposed or announced, amounting to $3.4tn in potential investment.

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New Wave of Manufacturing Facilities Boosted by Incentive Programs

Over the last two years, manufacturing facilities have experienced a surge in development, bolstered by incentive programs that have transcended presidencies. The most recent tax breaks, introduced by President Donald Trump through the One Big Beautiful Bill Act, have specifically targeted the advancement of these facilities.

Approximately two dozen facilities, with a combined committed capital of around $500B, are currently under construction across the nation, as reported by Avison Young. The brokerage firm is tracking 124 projects that have been proposed or announced, with a potential investment of $3.4T.

According to Avison Young’s lead industrial researcher, Peter Kroner, the pace of groundbreakings is expected to pick up speed through the end of the year. He explained the anticipation of another significant upward shift, akin to a hockey stick graph, in momentum by year-end as manufacturers are eager to capitalize on the benefits of the bill.

Presently, new groundbreakings are taking advantage of aid from former President Joe Biden’s CHIPS and Science Act, in addition to Trump’s One Big Beautiful Bill Act and the ongoing trade war. These factors prompt firms to relocate manufacturing operations to the U.S.

The demand for digital infrastructure, escalated by the mass roll-out of artificial intelligence, has allowed Biden’s CHIPS Act to continue to thrive. Craig Van Pelt, lead researcher at Cresa, noted that the CHIPS Act marks a significant financial package, but there is a long path between permitting and site preparation to active construction and production.

The One Big Beautiful Bill Act, backed by the Republicans, introduced a range of new incentives for building new factories, not limited to chip fabricators but extended to the broader manufacturing sector.

The tech industry primarily benefits from these tax incentives, yet pharmaceutical and automotive production are also among the leading projects that have broken ground. Aerospace is also witnessing growth, albeit on a smaller scale, with the swift development of drone technology and the increasing privatization of space travel by government-backed companies such as SpaceX and Blue Origin.

Most of the new projects rely on advanced robotics for maintaining precision in production lines, not requiring a large workforce on production floors. As Van Pelt explained, “A lot of the stuff that’s coming back is not traditional manufacturing, but it is more technically advanced manufacturing, which takes a different kind of worker.”

Let’s take a look at some of the biggest projects currently underway, according to data from Avison Young.

TSMC In Arizona

Location: Phoenix
Project Investment: $100B

TSMC, the world’s largest chipmaker, began construction in April 2025 on a third chip fabrication site in Phoenix, complementing its two existing facilities. The construction follows a March 2025 announcement to expand the plant from a $65B facility to a $165B megasite. In July, TSMC revealed plans to invest an additional $100B in the state, increasing its total commitment in Arizona to $265B.

Micron Expands In New York

Location: Clay, New York
Project Investment: $100B

Micron Technology is developing a $100B manufacturing plant in central New York, which is set to be the largest semiconductor facility in the U.S. The project officially broke ground in January, with the chip production expected to commence in
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