TSMC’s Ambitious Plan for an Independent Chip Supply Chain in the U.S.: Aiming to Manufacture Over 30% of 2nm and Advanced Chips in Arizona Alongside Taiwan

The Taiwan Semiconductor Manufacturing Company (TSMC) is making significant strides in the American semiconductor landscape. The company’s strategic vision aims to establish a self-sufficient chip supply chain within the United States, including the production of advanced nodes domestically.

TSMC Outlines Ambitious Future Plans for US Manufacturing

TSMC’s growing revenue stream from the United States has prompted a considerable expansion of its operations, particularly at its burgeoning facility in Arizona. Recent reports indicate that TSMC experienced an impressive 36% year-over-year revenue increase, largely due to the booming demand within the artificial intelligence (AI) sector and the success of its American facilities. According to a recent report by Nikkei Asia, TSMC is gearing up to enhance its U. S.operations by commencing the production of 2nm chips and beyond soon, with expectations that these efforts will constitute over 30% of the company’s total output.

After completion, around 30% of our 2-nanometer and more advanced [chip] capacity will be located in Arizona, creating an independent, leading-edge semiconductor manufacturing cluster in the U. S.

In addition to the 2nm production capabilities, TSMC’s CEO, C. C.Wei, announced plans for advanced chip packaging facilities and a dedicated research and development (R&D) center within the U. S.This aligns with the company’s earlier commitment, backed by a $100 billion investment pledge made during the Trump administration. Furthermore, Wei commented on the recent lifting of the H20 ban affecting NVIDIA, describing it as a positive development for TSMC’s business future. However, he indicated that TSMC has yet to receive fresh orders for the H20 AI accelerator, suggesting NVIDIA will prioritize existing inventory for the time being.

TSMC is emerging as a pivotal player in America’s semiconductor industry. The company has explicitly stated that the U. S.will take precedence over Taiwan, with plans to introduce 2nm production lines in Arizona in the near future. This initiative will enable American customers to source chips locally, greatly contributing to the “Made in USA”movement. Additionally, the domestic AI supply chain is poised for growth, especially with NVIDIA’s notable $500 billion investment, suggesting a promising outlook for U. S.chip manufacturing.