TSMC to Expand U.S. Investments in Line with Trump’s Semiconductor Policy

Taiwanese Chipmaker to Boost Production Capacity in Arizona, Aligning with U.S. Domestic Semiconductor Strategy

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor foundry, is set to increase its investments in the United States in response to President Donald Trump’s push for domestic semiconductor production. According to Taiwanese media outlets, including the United Daily News and China Times, TSMC’s board will discuss key strategies related to Trump’s semiconductor policy during meetings scheduled for February 10-11 at the company’s facilities in Arizona.

A major agenda item is the proposed construction of a new advanced semiconductor fabrication plant (fab) at TSMC’s Phoenix site. This new facility will focus on cutting-edge 1.6-nanometer (nm) process technology, significantly advancing the company's U.S. manufacturing capabilities. Currently, TSMC has already commenced mass production of 4nm chips at its first Arizona plant (P1), while its second facility (P2) is slated to begin 3nm chip production by the third quarter of 2027 after completing its structural phase this year. The development of these advanced nodes is critical as smaller process nodes, such as 3nm and below, enhance chip performance by reducing power consumption and increasing processing speed. TSMC’s expertise in 2nm and more advanced technologies positions it as a global leader in semiconductor innovation.

The company also plans to break ground on its third U.S. fab (P3) this year, with semiconductor production equipment expected to be installed by the end of 2027. The long-term vision for TSMC’s Arizona operations is expansive, with the site potentially housing up to six fabs (P6) across a sprawling 445-hectare complex, showcasing the company’s commitment to strengthening its U.S. footprint amid evolving geopolitical and economic landscapes.

In addition to expanding its chip production facilities, TSMC’s board will review plans to establish its first advanced semiconductor packaging plant in the U.S. This move aligns with broader efforts to secure the semiconductor supply chain within the United States, a priority under Trump’s administration. The former president, who recently resumed office, has consistently emphasized the need for onshore production of advanced semiconductors and has suggested the possibility of additional tariffs on foreign-made semiconductor products. This policy stance is seen as a driving factor behind TSMC’s accelerated investment plans in the U.S.

As the global demand for high-performance semiconductors continues to rise, TSMC’s strategic investments in Arizona not only support the U.S. government’s semiconductor independence goals but also reinforce the company’s competitive edge in the rapidly evolving tech industry.