TSMC Looks 'Ready' to Pivot Away From Taiwan to Cater to America's Chip Industry, Introducing High-End Chips Much Earlier
Concerns surrounding TSMC’s reliance on Taiwan-based manufacturing have intensified in recent months, particularly as the United States government continues to seek stronger safeguards against geopolitical risks tied to rising tensions between China and Taiwan. According to U.S. Commerce Secretary Howard Lutnick, Washington is now pushing TSMC to produce 50% of its total chip capacity within the United States as part of a broader effort to secure the nation’s semiconductor supply chain.
A recent report by the Taiwan Economic Daily reveals that TSMC is accelerating its roadmap for the U.S., with the company’s upcoming Arizona Fab 3 expected to introduce 2nm and A16 (1.6nm-class) chips in America by 2027, a full year earlier than originally planned.
TSMC’s Arizona operations are already scaling up aggressively. The company is preparing mass production of 4nm chips at its first Arizona fab, while 3nm production lines are also under construction and scheduled to commence by the end of this year.
The most significant development, however, is the announcement that TSMC will introduce both 2nm and A16 processes in the U.S. by 2027 through its fourth Arizona fab. Given that TSMC’s Taiwan operations are set to begin 2nm production next quarter and A16 around the second half of 2026, this means U.S. facilities will be only about a year behind Taiwan—a remarkable narrowing of the gap that just months ago seemed far larger.
This accelerated timeline coincides with the Trump administration’s new chip policies, which are designed to force a diversification of global supply chains and strengthen U.S. domestic production. Industry observers believe these policies may have pushed TSMC into ramping up its American investments more aggressively, ensuring that the U.S. chip industry can pivot away from over-reliance on Taiwan.
By next year, TSMC is expected to cater to at least 30% of America’s semiconductor demand, supported by as many as six fabs under construction in Arizona. This not only demonstrates the company’s commitment to diversifying its global supply chain but also aligns with Washington’s demand for a robust and secure semiconductor base within U.S. borders.
Beyond geopolitics, TSMC’s strategy also underscores its intent to maintain strong partnerships with global tech leaders such as NVIDIA and Apple, both of which are critical customers for its advanced nodes. By ensuring that cutting-edge nodes like 2nm and A16 are available on American soil, TSMC positions itself as a central player in the “Made in USA” semiconductor narrative, giving its partners greater confidence in supply chain resilience.
In just a matter of months, the conversation around TSMC’s U.S. expansion has shifted from skepticism to a clear demonstration of accelerated commitment. With the United States insisting on parity with Taiwan in terms of production capacity and process technology, and TSMC appearing willing to meet those demands, the global semiconductor industry could see one of its most significant geographic rebalancing efforts in decades.
Do you think TSMC’s U.S. fabs can truly catch up to Taiwan’s cutting-edge production, or will the gap remain larger than expected despite political pressure?
