Taiwan Semiconductor Manufacturing Co. (TSMC) is set to accelerate the expansion of its multi-billion dollar operations in Arizona, supported by strong recent earnings performance and a new trade agreement between the United States and Taiwan.
The world's largest contract chipmaker has earmarked $165 billion in investment in the United States, in line with Washington's efforts to rebuild the domestic semiconductor production chain.
The investment is expected to continue to increase to meet the growing demand for artificial intelligence-related chips.
TSMC has also signaled a significant increase in capital spending, with a projected increase of more than 30 percent in the new year compared to the previous year.
The company has also acquired additional land in Arizona and plans to develop a large-scale fabrication plant cluster in the state.
The expansion comes in line with the signing of a US-Taiwan trade agreement that caps tariffs on Taiwanese goods at a maximum rate of 15 percent.
Under the agreement, Taiwanese companies committed to investing up to $250 billion in the United States across semiconductor, artificial intelligence and related industries, as well as credit guarantees to strengthen supply chains.
US authorities aim to transfer up to 40 percent of Taiwan's semiconductor supply chain to the United States through the agreement, further strengthening the agenda to return chip production to the country.
TSMC stressed that the expansion in Arizona is driven by customer demand and the progress of existing operations, not directly related to trade negotiations.
Its first fabrication plant in Arizona, which has begun large-scale production, is now recording a level of output and technology comparable to its main facility in Taiwan.
However, TSMC maintains that the development of the most advanced technologies will continue to be centered in Taiwan, to ensure smooth collaboration between research and manufacturing operations.
