Big Tech’s Demand for TSMC’s ‘Made in USA’ Chips Forces Company to Accelerate Production
TSMC is witnessing overwhelming demand from its U.S. customer base, prompting the world’s largest contract chipmaker to accelerate its production timelines in Arizona by several quarters.
According to a report by the Taiwan Economic Daily, the surge in orders from companies such as NVIDIA, Apple, and AMD has forced TSMC to rush its schedule. The company’s first Arizona fab, originally planned to begin high-volume manufacturing (HVM) in 2025, had already started operations in Q4 2024. Similarly, its second fab — initially scheduled for a later date — has been pushed forward, with production expected to start almost a year earlier than planned.
N2 and A16 Nodes Coming Earlier to the U.S.
TSMC now anticipates that its 2nm (N2) and even more advanced 1.6nm (A16) nodes will arrive in U.S. facilities by 2028, with its entire process roadmap effectively accelerated by at least four quarters. This marks one of the fastest timetable shifts in TSMC’s history.
The driving force behind this acceleration is the AI boom, led by NVIDIA, which is reportedly consuming the majority of TSMC’s most advanced production lines. Beyond GPUs, ASICs for AI workloads are also becoming central, further increasing the race among Big Tech firms to secure access to TSMC’s latest nodes.
Arizona Operations: Profitable But Costly
TSMC’s Arizona fabs have already reached profitability for the second consecutive quarter, but margins remain diluted compared to its operations in Taiwan. Manufacturing in the U.S. carries higher costs, from labor to materials, yet the long-term strategic and political value is undeniable.
Looking ahead, TSMC’s U.S. footprint will expand beyond fabs, with plans for advanced packaging facilities, dedicated R&D centers, and additional plants to meet surging demand.
The Bigger Picture: TSMC’s Role in the U.S. Chip Future
This acceleration underscores how essential TSMC has become to the U.S. semiconductor ecosystem. Despite Intel’s renewed push under the CHIPS Act, no domestic firm currently matches the scale of demand being directed toward TSMC. As AI, cloud, and consumer electronics continue to grow, the company’s presence in Arizona will be central to shaping the future of U.S. chip manufacturing and technological leadership.
The question is no longer if TSMC can support U.S. chip independence, but rather how much further it can stretch capacity and timelines to satisfy an industry that seems insatiable.
Do you think TSMC’s aggressive U.S. expansion will reduce America’s reliance on Asian chip supply chains, or will it simply shift where the dependency lies?
