Taiwan Semiconductor Manufacturing Company (TSMC) has seen an unexpected boom in demand for its U.S. operations, as major technology firms flock to its facilities in the U.S. Amidst growing geopolitical concerns, these firms are increasingly turning to TSMC’s U.S.-based plants to ensure their production capabilities are secure. According to reports from the Taiwan Economic Daily, TSMC’s U.S. fabs are now fully booked by companies such as Apple and NVIDIA, even after the company expanded its Arizona facility.

Why Tech Giants Are Opting for U.S.-Based Production

The shift towards U.S. production is driven by a combination of factors. Amid ongoing global supply chain tensions and geopolitical uncertainties, U.S. facilities provide a safer, more stable environment for tech companies. Companies like Apple and NVIDIA are eager to avoid potential disruptions in Taiwan, which is at the center of rising geopolitical tensions in the region. By producing in the U.S., these companies not only mitigate risks but also stand to benefit from policies that favor domestic manufacturing, particularly the incentives provided under the Trump administration.

TSMC’s U.S. Expansion and Technological Advancements

TSMC has made significant investments in its U.S. operations, committing over $100 billion to build and scale its facilities. The Arizona plant has been expanded to accommodate cutting-edge production nodes, positioning the company to meet the growing demand for advanced chips. TSMC plans to manufacture chips with a 2nm process in the U.S., which will account for up to 30% of its 2nm supply in the country. Moreover, TSMC is set to open dedicated R&D centers and advanced packaging facilities in the U.S., further solidifying the country’s role as a key hub for cutting-edge semiconductor production.

Intel’s Struggle as TSMC Dominates U.S. Chip Market

Historically, Intel was seen as the dominant player in the U.S. chip industry. However, the rise of TSMC’s U.S. operations has challenged Intel’s position. The shift in the industry has left Intel with a new, more competitive landscape. Although Intel is optimistic about its future with upcoming technologies like the 18A process, the company now faces a fierce competitor in the form of TSMC, which has quickly become the preferred foundry for many of the world’s leading tech companies.

PHOTO: NIKKEI ASIA/SHINYA SAWAI

This article was created with AI assistance.