TSMC bets big on Arizona for cutting-edge chipmaking

TSMC plans to produce 30% of its most advanced chips in Arizona upon completion of its Phoenix plants. This significant investment supports the U.S. push for domestic chip production and AI advancement. Chairman CC Wei highlighted this expansion as a move toward an independent leading-edge semiconductor manufacturing cluster. The company is diversifying its manufacturing outside of Taiwan, mitigating political risks. TSMC has already committed $165 billion to its Arizona operations. The first Phoenix factory began production recently, and the second is now complete. A third plant, using advanced technologies, will start construction later this year. This includes additional factories, packaging facilities, and an R&D center. TSMC is not considering joint ventures or technology sharing agreements, seemingly dismissing rumors. Despite U.S. tariffs, TSMC remains optimistic about its 2025 revenue.