Well, it seems like TSMC has chosen the US as its next place of expansion, as the firm has now revealed that it plans to produce cutting-edge chips in Arizona.
Trump's Pressure Tactic On TSMC Has Apparently Worked Out, As The Taiwan Giant Plans To Show Massive Commitment In The Region
With the Trump administration taking office, TSMC's US ambitions have grown to new levels, to a point where the firm is now determined to bring advanced chip production into the nation. According to TSMC's VP, Peter Cleveland (via Focus Taiwan), it is claimed that the company plans to produce its third fab in Arizona to sustain the "US AI leadership" and ensure that America becomes the second home for TSMC, apart from Taiwan. By these statements, the idea of a "technology transfer" certainly looks evident.
We have not started to break ground on our third wafer fab in Phoenix. We would like to start next week. We're going to build those (high-end chips) in Phoenix to sustain the U.S.'s AI leadership.
- TSMC
TSMC is investing $65 billion in Arizona alone, with plans to set up a total of three facilities. The very first fab would be responsible for 4nm, and according to reports, mass production is already underway, and companies like AMD have already placed orders for their Ryzen CPUs. With the second facility, however, the Taiwan giant plans to produce higher-end chips, notably the 3nm, 2nm, and likely the A16, which is the first time we have seen mention of this particular node. The reason why this is such a significant development is that experts claim that without a "core technology" transfer, TSMC's US plans won't do much.
In a previous report, we discussed how the Taiwanese government forbade TSMC from producing 2nm offshore, citing that they won't allow Taiwan's importance in chip production to overshadow the US. However, now, with the Trump administration and how the industry's dynamics have evolved, it looks clear that TSMC won't rely "solely" on Taiwan in the future and that the company sees the US as the ideal destination for expansion, which is why some of their European projects are also said to be halted for now.
Based on what we know, TSMC's A16 (1.6nm) will likely arrive on the market by H2 2026, which means the process will be available for production in the US two years after Taiwan. While the delay is undoubtedly there, it does show that the US won't be deprived of advanced nodes and that, in the longer run, the nation could play a massive role in the semiconductor industry's dynamics.
TSMC's VP also believes that the US will account for 75% of TSMC's business in the longer run, and the Trump administration has played a key role in catalyzing this process. It seems like Trump's pressure tactics have worked out in restoring the US's chip glory, although this will take years from now on.
