TSMC bends to US chip muscle, Arizona set for A16 rush

TSMC will accelerate advanced semiconductor production at its Arizona facilities, bringing high-end manufacturing nodes to the United States earlier than planned. The Taiwan Economic Daily reports that the company's third Arizona factory will begin output of 2-nanometer and A16 chips by 2027, one year ahead of the original schedule. Commerce Secretary Howard Lutnick has pushed for TSMC to shift 50 percent of its total production capacity to American soil amid geopolitical concerns between China and Taiwan.

The semiconductor manufacturer currently produces 4-nanometer chips at its Arizona location, and 3-nanometer production lines should start operations by the end of this year. TSMC expects to serve 30 percent of American chip demand by next year through six Arizona fabrication plants. The company works with partners such as NVIDIA and Apple to establish domestic supply chains under the current administration's manufacturing policies.
 

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