Taiwan Semiconductor Manufacturing Company sends computer chips from its Arizona factory back to Taiwan for final processing. The company cannot complete the packaging work needed for artificial intelligence computers at its American facilities. High demand from AI server makers forces TSMC to ship wafers across the Pacific Ocean for finishing. The Arizona plant lacks the advanced packaging services that companies like NVIDIA require for their products. Air cargo companies have seen business surge as more chips travel between the two countries.
Eva Air reports major increases in shipping requests since TSMC opened its American operations. President Trump's trade policies initially slowed chip orders when tariffs took effect in April. Companies resumed heavy ordering after the government paused those tariffs. TSMC moved production to Arizona because its Taiwan factories had too many backlogged orders. The American chip industry still faces gaps that need solutions.
TSMC promised to build advanced packaging facilities as part of its $165 billion American investment plan. The company has not made progress on those packaging plants despite the original commitment. Shipping wafers to Taiwan costs more money but neither TSMC nor its customers seem concerned about the extra expense. Artificial intelligence demand remains extremely strong across the technology sector. The United States expects to meet half of its domestic chip needs through American production by 2032.
Eva Air reports major increases in shipping requests since TSMC opened its American operations. President Trump's trade policies initially slowed chip orders when tariffs took effect in April. Companies resumed heavy ordering after the government paused those tariffs. TSMC moved production to Arizona because its Taiwan factories had too many backlogged orders. The American chip industry still faces gaps that need solutions.
TSMC promised to build advanced packaging facilities as part of its $165 billion American investment plan. The company has not made progress on those packaging plants despite the original commitment. Shipping wafers to Taiwan costs more money but neither TSMC nor its customers seem concerned about the extra expense. Artificial intelligence demand remains extremely strong across the technology sector. The United States expects to meet half of its domestic chip needs through American production by 2032.
