tsmc's bold move: u.s. to produce 30% of advanced chips
Taipei, Monday, 15 September 2025.
tsmc is aggressively expanding its global manufacturing footprint. This expansion includes significant investments in the united states, japan, and germany. the company plans to produce 30% of its advanced 2-nanometer chips in the u.s. This move addresses rising demand and geopolitical pressures. It also aims to create a more resilient supply chain. the company’s chairman stated that the trump administration will not take a stake in the company. This announcement follows trump taking a 10% stake in intel.
Strategic motivations for global expansion
TSMC’s global expansion is driven by customer demand and geopolitical pressures [1]. The company is investing heavily in the U.S., Japan, and Germany [1]. This move highlights TSMC’s importance to taiwan and its role in reshaping global semiconductor supply chains [1]. Analyst Joanne Chiao notes that these expansions benefit american clients and those wanting a u.s. presence [1]. Arizona Senator Mark Kelly emphasized that domestic microchip development reduces reliance on foreign supply chains [1].
u.s. investment and capacity
TSMC has committed $165 billion to its U.S. operations, exceeding any other CHIPS Act awardee [1]. Chairman C.C. Wei credits President Trump’s vision for initiating advanced chip manufacturing in the U.S [1]. The Arizona fabs will produce mobile and high-performance computing products [1]. TSMC’s U.S. capacity is fully booked through 2026, with demand expected to continue into 2027 [1]. TSMC plans to establish an independent semiconductor manufacturing cluster at its Fab 21 Arizona site [1].
geopolitical and economic considerations
MIC’s Cheng suggests that TSMC’s expansion will alter cost and revenue structures for the company and its customers [1]. On August 6, President Trump announced a plan to impose a 100% tariff on semiconductor imports [1]. China’s Foreign Ministry spokesperson Lin Jian stated China opposes US claims of overcapacity, viewing it as protectionism [7]. Lin Jian also said China opposes economic restrictions under the pretext of ‘Russia-related’ issues [7]. These geopolitical factors impact TSMC’s strategic decisions and market dynamics.
impact on tsmc’s market leadership
TSMC’s reliance on advanced equipment is critical for maintaining its leading-edge processes [2]. The company’s ability to navigate these challenges is noted by J. Travis Mosier, who acknowledges the savvy of TSMC executives [1]. Despite potential headwinds, TSMC’s ongoing investments and strategic diversification reinforce its market leadership [1]. These expansions aim to ensure a resilient supply chain for critical technologies [1]. The future trends in semiconductor equipment will significantly influence the entire industry supply chain [2].