Taiwan Semiconductor Manufacturing Company (TSMC) has broken ground on a third chip fabrication plant in Arizona, reinforcing its commitment to significantly expand its operations in the United States. The announcement came as U.S. Commerce Secretary Howard Lutnick visited the TSMC site, which the company described as the largest foreign investment ever made in the U.S. This move aligns with ongoing efforts by the U.S. government to boost domestic semiconductor production and reduce reliance on foreign suppliers amid escalating geopolitical and economic tensions.
TSMC, the primary chip supplier for tech giants like Apple and Nvidia, is a pivotal player in the U.S. semiconductor strategy. Lutnick has indicated that the Trump administration could leverage pending subsidies under the Chips Act to pressure semiconductor companies to deepen their manufacturing presence in the U.S. According to reports, he has suggested that companies seeking federal support must go beyond initial commitments and invest more significantly in American soil.
In March, TSMC CEO C.C. Wei appeared with former President Donald Trump at the White House to unveil plans for an additional US$100 billion investment in the U.S., adding to the previously announced US$65 billion. This expansion will ultimately establish up to six advanced wafer fabrication plants, along with additional sites for advanced packaging processes. The third and fourth factories are set to use TSMC’s cutting-edge N2 and A16 process technologies, while the fifth and sixth will feature even more advanced capabilities.
Lutnick emphasized that the increased investment was achieved without direct subsidies, crediting the Trump administration’s tariff strategy for encouraging the reshoring of manufacturing. “What did the Trump administration pay for that? Zero,” he stated in a recent interview, pointing out that the tariff policies created the necessary economic pressure to drive foreign companies to build in the U.S. He added that this initiative would generate tens of thousands of construction and full-time jobs.
TSMC’s second Arizona plant has already completed construction and is now preparing for faster production rollout. The first facility, launched into high-volume production late last year, reportedly achieved yields comparable to those of the company’s operations in Taiwan, a significant milestone for quality control and technological parity.
With this third plant, TSMC continues to solidify its position at the heart of the U.S. semiconductor manufacturing revival, driven by both strategic business considerations and policy incentives.
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