The US is witnessing a 'semiconductor boom' as we speak, with chip giants like TSMC and Samsung pouring huge foreign investments into the region.
The U.S. Is Shifting Its Stance From 'Passive' to Being An Aggressive Manufacturer of Key Technologies
With the Trump administration taking over the office, we have seen an 'unprecedented' level of chip demand coming in from US customers, which is why companies like TSMC have pledged to invest 'hundreds of billions' into America to ensure that the nation has a resilient chip supply chain. Projects like TSMC Arizona indicate that the US is emerging as a world semiconductor hub, alongside Taiwan, which is why, according to an estimate by McKinsey, the development of the chip industry in the US is significantly higher than in any other region.
According to the report, nearly 90% of the total FDI in the chip industry was directed towards the US in 2025 alone, with a majority of partnerships formed between entities from Taiwan and South Korea. Of course, out of all the names shifting manufacturing to the US, there's no doubt that TSMC is the largest, not just in terms of the magnitude of its investments, but also in the importance of the company's pursuit to establish a chip supply chain in the US. TSMC's Arizona fab is currently mass-producing the 4nm technology, and even has plans to scale up to A16 (1.6nm), showcasing the firm's commitment towards producing chips in then US.
Apart from Taiwan, South Korea has heavily invested in the US semiconductor sector, driven by companies such as Samsung and Micron. Samsung's Taylor facility has been a victim of delays ever since it received CHIPS Act grants under the Biden adminstration, but based on recent reports, the fab is back on track, and is showing promising development towards producing the SF2 (2nm) process in the US. The company has also received pivotal orders for Tesla's custom AI chips; hence, it would not be wrong to say that Samsung also plays an integral role in the US chip supply chain.
Well, one of the significant reasons why manufacturing activity in the US has 'boosted' in recent times is due to the policy of the Trump administration to take this matter as 'national security', which is why President Trump has threatened companies like TSMC with massive tariffs up to 100% if they are unable to mass-produce chips in the nation. Since a large portion of the Taiwan chip giant's customers are indeed from the US, the firm needs to have resilient production lines in place.
The chip supply chain shift isn't just exclusive to the US, since the report also dives into how Europe has switched its stance into actively protecting its "technological base", following aggressive export controls, and even seizing control of entities like Nexperia. TSMC is also known to be investing in the EU, particularly in Germany, which ultimately indicates the broader intent to move manufacturing from the East to the West. While the efforts certainly don't guarantee that the West will have an independent supply chain, they surely do enhance the region's stance towards becoming a key manufacturer of technologies on home grounds.
News Source: DigiTimes
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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