In the fierce competition in the global semiconductor industry, TSMC is undoubtedly the leader in the industry. Since its inception, TSMC has been occupying an important position in the global semiconductor industry with its superior process technology and world-leading production capacity. In April 2025, TSMC announced that it would transfer about 30% of its advanced process capacity of 2nm and below to Arizona, marking a key step in TSMC's global layout and deeply reflecting its ambitions and challenges in the global semiconductor industry.
1. TSMC's U.S. layout and strategic goals
(1) Capacity planning and technology development
TSMC plans to build six wafer fabs in Arizona, USA, mainly including Fab 3, Fab 4, Fab 5 and Fab 6, of which Fab 3 and Fab 4 will introduce 2nm (N2) and A16 process technologies, and Fab 5 and Fab 6 will be ready for more advanced technologies. This layout not only means that TSMC will produce the most advanced semiconductor products in the United States, but also shows that TSMC is ready to further promote the expansion of advanced processes on a global scale in the future. According to TSMC's long-term plan, as advanced processes continue to develop, these factories will be gradually expanded in the coming years and more technological breakthroughs will be introduced to meet the growing needs of the global market.
Pictured: TSMC's Arizona plant
(2) R&D center and talent training
TSMC plans to set up a large-scale R&D center in the United States, which is expected to have about 1,000 employees, about one-tenth the size of its headquarters in Taiwan. The R&D center will focus on supporting independent operations in the U.S. fab and gradually expand to a wider range of areas, including semiconductor process research and development and the exploration of new materials. By establishing R&D facilities and cultivating local talent, TSMC is able to effectively improve its R&D capabilities in the United States, optimize production processes, and adapt to the needs and policy environment of the U.S. market. The move will also help TSMC strengthen its core competitiveness in global technology research and development, especially in chip design, manufacturing process and equipment autonomy.
(3) Market demand and customer relationship
TSMC's U.S. customers include Apple, AMD, Nvidia and other top semiconductor demanders in the world. With the increasing demand for advanced process chips from these companies, TSMC's establishment in the United States will be able to provide efficient products and services to these customers in a more timely manner, further consolidating the cooperative relationship with major customers in the United States. At the same time, TSMC will enjoy policy support from the government and stronger industrial resource advantages in the United States. With the help of the U.S. technology ecosystem, TSMC can not only accelerate its technology R&D and mass production process, but also enhance its competitiveness in the global semiconductor industry.
(4) Global strategic layout
TSMC's U.S. layout is not only a measure to respond to market demand, but also a key step in its strategy to respond to changes in the competitive landscape of the global semiconductor industry. In recent years, the U.S. government has introduced policies such as the CHIPS and Science Act to actively promote the development of the local semiconductor industry and attract semiconductor giants such as Intel and Samsung to enter the U.S. market. The addition of TSMC will further enhance the position of the United States in the global semiconductor industry chain, and enhance its influence in the global market by strengthening cooperation with local technology companies and the government.
2. Challenges facing TSMC's U.S. layout
(1) High construction and operating costs
One of the biggest challenges TSMC faces when building a factory in the United States is the high construction and operating costs. According to Liu Deyin, former chairman of TSMC, the construction cost in the United States is about 30 to 50 percent higher than that in Taiwan. This is not only in terms of hardware such as land, buildings, and equipment, but also in terms of transportation, labor, and raw material costs. In addition, due to cultural differences and labor market differences, TSMC's labor training and management costs in the United States are correspondingly higher. These factors will have a direct impact on the efficiency and profitability of TSMC's operations in the United States.
(2) Shortage of technical personnel
Although TSMC plans to vigorously cultivate local technical talent in the United States, there is still a shortage of technical talent in the U.S. semiconductor industry, especially in the field of advanced processes. According to the data of the American Semiconductor Industry Association, there is a shortage of more than 50,000 technical talents in the semiconductor field in the United States in recent years, and with the development of process technology to 3nm, 2nm and more advanced nodes, the demand for talents will further intensify. TSMC's layout in the United States will face the dual challenges of recruiting and cultivating talents, especially in the innovation and talent training cycle of high-end process technology, which may affect the construction progress and production capacity of its new factory.
(3) Policy and market uncertainty
Although the U.S. government has provided a large number of subsidies and preferential policies to foreign-funded companies such as TSMC through the CHIPS and Science Act, there is still uncertainty about the stability and sustainability of policies as the political environment changes. In particular, policy adjustments are likely to occur on the issue of the political sensitivity of dependence on foreign capital in the United States. For example, during the Trump administration, there were trade barriers and tariff policies for foreign companies, and this series of policy changes put foreign companies in the United States at greater risk. TSMC needs to be cautious about possible policy adjustments to ensure that its investments can continue to yield results.
3. Far-reaching impact on the global semiconductor industry
(1) The promotion of the status of the U.S. semiconductor industry
Nearly 30% of TSMC's advanced process capacity of 2nm and below is deployed in the United States, which has significantly enhanced the position of the United States in the global semiconductor industry chain. The U.S. will further consolidate its advantages in semiconductor production and become an important production base for the global semiconductor industry. This layout can not only attract more semiconductor companies to settle in the United States, but also lead the adjustment of industrial policies in other countries and regions, and promote the reallocation of resources in the global semiconductor industry.
(2) Restructuring of the global semiconductor industry chain
TSMC's U.S. layout will promote the restructuring of the global semiconductor industry chain. U.S. semiconductor companies will benefit from TSMC's capacity expansion in the United States, especially in the production of high-end chips and technological innovation. At the same time, the entry of TSMC also means that the pressure on other semiconductor companies in Asia in technological innovation and capacity layout increases, which may lead to upstream enterprises in the global industrial chain to accelerate technological research and manufacturing upgrades to cope with the competitive pressure brought by TSMC.
(3) The intensification of competition in the global semiconductor market
TSMC's deployment in the United States will further intensify the competitive landscape of the global semiconductor market. On the one hand, TSMC will compete more fiercely with old semiconductor giants such as Intel and Samsung in the field of advanced processes; On the other hand, the rise of the domestic semiconductor industry in the United States will make other semiconductor powers such as China, South Korea, and Japan face greater market competition pressure. Global semiconductor companies must increase R&D investment and promote technological innovation in order to remain competitive in the market.
IV. Conclusions
TSMC's strategic move to transfer 30% of its advanced process capacity of 2nm and below to Arizona, USA, is not only an important step in its global layout, but will also have a far-reaching impact on the global semiconductor industry. This move will not only help TSMC better expand the U.S. market, strengthen cooperation with U.S. companies, improve technology research and development capabilities, but also further consolidate its industry leadership position in the global semiconductor industry. However, the process is fraught with challenges, including high construction and operating costs, talent shortages, and policy risks. In the future, TSMC must actively respond to these challenges, optimize its global layout, further strengthen technological innovation and talent training, and ensure its continued competitiveness in the global semiconductor industry.
