Trump’s “Made in USA” Vision Struggles with iPhone, Yet TSMC Arizona Could Fulfill 50% of U.S. Chip Demand by 2032

The Trump administration marked a notable achievement by rekindling domestic chip production, fueled by TSMC’s significant investments within the United States. This strategic pivot is further supported by a growing interest among American firms to source chips locally.

Transformative Investments by TSMC Boost US Chip Industry Towards Self-Reliance

Since the inauguration of the new administration in January, enhancing the United States’ position in the global semiconductor race has been prioritized. During his election campaign, President Trump alleged that Taiwan was misappropriating “US technology”and pushed for its return to American soil. Shortly after taking office, the US initiated a groundbreaking $165 billion agreement with TSMC, aimed at bolstering chip production capabilities domestically.

As a result, a recent analysis by Bernstein Research indicates the US is set to meet up to 50% of its chip demand from domestic sources by 2032, marking a substantial leap from last year’s 0% reliance on local production (source: Nikkei Asia).This significant progress can be attributed to the CHIPS Act, which was further accelerated by effective negotiation strategies employed during the Trump administration.

Image Credits: Nikkei Asia

While the US may not yet dominate the high-end system-on-chip (SoC) market, it is poised to serve the demand for mainstream products. For instance, NVIDIA’s Blackwell AI accelerators will utilize TSMC’s N4P process. NVIDIA’s commitment to invest $500 billion in domestic production aims to shift the landscape from Taiwan to the United States, involving significant players like Foxconn, Quanta, and Wistron in establishing local facilities.

AMD EPYC CPUs aiding TSMC in next-generation chip manufacturing

Although President Trump has not successfully revolutionized Apple’s iPhone production in the US, significant advancements have been made in the data center and chip markets. TSMC is not resting on its laurels; the company is planning to enhance its A16 process in America inevitably.

Looking ahead, it is clear that the US is set to experience an exponential increase in domestic chip production capabilities. With companies like Intel Foundry stepping up to deliver competitive nodes, it is reasonable to assert that the United States is progressing towards achieving complete self-sufficiency in chip manufacturing and sourcing.

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