Only 7% of U.S. Chip Demand Met by TSMC’s Arizona Facility, Treasury Secretary Scott Bessent Highlights Regulatory Barriers to Expansion

In recent months, TSMC has significantly ramped up its investments in the United States, yet the firm appears to require further action to meet the surging demand for semiconductor chips. The Trump administration is purportedly supporting the Taiwan-based company with regulatory adjustments to facilitate these efforts.

The Challenge of Meeting America’s Chip Demand: TSMC’s Ongoing Investments and Regulatory Hurdles

TSMC’s involvement in the U. S.semiconductor sector has intensified, particularly following its substantial investment during Donald Trump’s presidency. The manufacturing facility in Arizona has been a focal point for producing advanced chip technology; however, it is struggling to keep up with the immense demand in the U. S.According to Treasury Secretary Scott Bessent, TSMC’s Arizona plant currently fulfills just 7% of domestic chip requirements. One key factor limiting growth is the burden of overregulation.

TSMC wants to build a gigantic fab system in Arizona, and I think it might be able to produce up to 7% of the chips that the United States needs. And they’re dealing with local building inspectors.

Evidently, these chip design plants are moving so quickly, you’re constantly calling an audible and you’ve got someone saying, ‘Well, you said the pipe was going to be there, not there. We’re shutting you down.

Bessent points out that excessive regulatory measures are a significant barrier to the swift expansion of TSMC’s facilities. He mentioned that the company is facing challenges due to local inspectors, indicating that bureaucratic processes are introducing delays and obstacles in the manufacturing processes. The Trump administration is reportedly working to alleviate these regulatory challenges, aiming to streamline the establishment of a robust supply chain within the United States.

Shifting focus toward local production, TSMC is not only investing in increasing its output but is also eager to advance its manufacturing capabilities to include state-of-the-art chips like the A16 (1.6nm) technology. Despite these initiatives, the overwhelming demand in the U. S.suggests that it will be several years before TSMC can establish a fully operational supply chain. At present, the competitive landscape is intense, and U. S.customers are increasingly turning to TSMC instead of domestic alternatives such as Intel or Samsung for their semiconductor needs.

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