TSMC has been investing massively in America in the last few months, but the company seems to need to do a lot more, and the Trump administration is aiding the Taiwan giant with regulatory measures.
TSMC's Massive Investments Still Aren't Enough For Demand For Chips In America; A Lot More Is To Be Done
TSMC has been heavily involved in the US chip industry, especially after making a significant investment under the Trump administration. The Arizona facility, in particular, has been responsible for producing cutting-edge nodes, however, the production capacity isn't keeping pace with the gigantic demand in America. According to Treasury Secretary Scott Bessent (via The All-In Podcast), TSMC Arizona currently handles only 7% of the US chip demand, and one of the reasons why the Taiwan giant is held back is due to overregulation.
TSMC wants to build a gigantic fab system in Arizona, and I think it might be able to produce up to 7% of the chips that the United States needs. And they’re dealing with local building inspectors.
Evidently, these chip design plants are moving so quickly, you’re constantly calling an audible and you’ve got someone saying, ‘Well, you said the pipe was going to be there, not there. We’re shutting you down.
Interestingly, Bessent revealed that one reason TSMC's chip facilities are not expanding rapidly is that overregulation has delayed several projects. The Treasury Secretary claims that TSMC is dealing with "local inspectors," which means that local regulatory bodies are causing delays due to the usual bureaucratic procedure or even causing hurdles in facility manufacturing. It is claimed that the Trump administration is focusing on removing problems caused by regulations, by making it easier to build a supply chain in America.
TSMC has been focusing its efforts in America. In addition to expanding production capacities, the company has shown interest in shifting cutting-edge chip production into the region, including up to A16 (1.6nm). However, considering the scale of demand in the US, it's certain that it would take TSMC several years to develop a capable supply chain. And for TSMC, well, competition is so rough right now that American customers only rely on the Taiwan giant, instead of opting for the native Intel Foundry, or even Samsung.
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