It seems like TSMC has also managed to see the spotlight in the US since major tech giants are rushing to place orders in the firm's US facilities, creating a massive bottleneck.
TSMC's US Fabs Are Completely Booked By Tech Giants As They Prove To Be a Viable Alternative To Business In Taiwan
With the global supply chain under tension, companies have resorted to the US industry as a way to secure their trade, and in light of this, the demand for production in the region has soared massively. TSMC capitalized on this by investing $100 billion+ in the area, and scaling up its Arizona facility to have higher capacity and the ability to produce cutting-edge nodes. Now, according to a report by Taiwan Economic Daily, it is claimed that TSMC's US facilities are fully booked by Apple and NVIDIA, even after expanding their capacities.
The reason behind such tremendous interest in TSMC's US operations is that tech companies are now seeing it much more viable to place orders in the US, compared to nations like Taiwan, since they are eager to avoid geopolitical tensions. On top of that, by producing in the US, firms can ultimately get leverage from the Trump administration, which is why NVIDIA and Apple have announced billions of dollars in investments in the nation. The Taiwan giant is capitalizing on the hype massively, since quarterly profits are booming, and that doesn't look to stop for now.
TSMC has huge plans for its US operations, including a "technology transfer" for cutting-edge nodes. The firm has expressed its intention to produce the A16 (1.6nm) process in the country, and is expected to produce up to 30% of the 2nm supply in the US, so the US will remain a priority in the longer run. The giant Taiwanese company also has plans to open up a dedicated R&D center and advanced packaging facility in the US, so the country will serve as an alternative to Taiwan.
It was a general perception that the US chip industry belonged to Intel alone, and that the company would set the tone for domestic production. But with the TSMC-Trump deal, things took an expected turn, and it seems like Intel's chip business will now have to compete in a market that was presumed to be theirs initially. However, there's a lot of optimism around Team Blue's upcoming nodes, particularly the 18A process, so the tides will turn in their favour, but it will take time.
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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