TSMC’s Big Move: Expanding in the U.S.

Level: Advanced | Date: April 26, 2025

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TSMC Doubles Down on U.S. Expansion

TSMC (Taiwan Semiconductor Manufacturing Company), the world’s top chip maker, is doubling down on its U.S. investments. Recently, TSMC announced that it will expand its US capacity by building a third factory in Arizona, boosting its total investment in the state to over $65 billion.

Global Demand and Domestic Push

The decision comes as global demand for advanced semiconductors grows, and as U.S. leaders push to strengthen domestic chip production. These new factories are expected to create thousands of high-tech jobs and help reduce America’s dependence on foreign-made chips.

Focus on Advanced Technologies

TSMC’s factories will focus on making cutting-edge chips used in everything from smartphones to AI technologies. The company said it aims to start production at the new facility by 2028.

Securing Supply Chains

Industry experts see this move as part of a larger trend where major tech companies are seeking to “de-risk” their supply chains. By moving critical production facilities closer to U.S. soil, companies like TSMC are preparing for a future where global trade disruptions could become more common.

Strategic Importance for National Security

In addition to the economic benefits, the expansion is being hailed as a strategic win for national security. Semiconductors are essential for defense technologies, and having a stable, local supply will be vital for future innovation and protection efforts.

A New Era of Tech Independence

This move signals a major shift, showing that critical parts of the tech supply chain are moving closer to the U.S. market. It also reflects rising tensions between the U.S. and China, with both sides trying to secure their technology futures.

This article was inspired by Reuters.

Key Vocabulary

Semiconductor (n.): A material that can control electricity.
- Semiconductors are essential for making electronic devices.
Investment (n.): Money spent to earn more money in the future.
- Their investment in Arizona will create thousands of jobs.
Facility (n.): A building where a specific activity happens.
- The new facility will produce advanced chips.
Dependence (n.): Needing help from someone or something.
- The U.S. wants to lower its dependence on foreign chips.
Boost (v.): To increase or improve something.
- TSMC’s new investment will boost local jobs.
Critical (adj.): Very important.
- Semiconductors are critical to modern technology.
Domestic (adj.): Related to one’s own country.
- Domestic production is a priority for the U.S.
Supply chain (n.): The system that moves products from creation to the consumer.
- Supply chain issues have slowed production.
Cutting-edge (adj.): Extremely modern and advanced.
- TSMC produces cutting-edge chips.
Tensions (n.): Strained relationships between groups or countries.
- Tensions between the U.S. and China are rising.

Comprehension Questions

Article Questions

Where is TSMC building a new factory?
How much is TSMC investing in Arizona?
What products will the new factories make?
When is production at the new facility expected to start?
Why are tech companies moving parts of their supply chain to the U.S.?

Topic Discussion Questions

Why do you think semiconductor production is so important now?
How could having more chip factories in the U.S. impact the global economy?
What challenges might TSMC face in building these new factories?
How do tensions between countries affect global business?
Would you like to work in the tech industry? Why or why not?

Useful Phrase

“Double down” — To commit more strongly to a plan.
- TSMC is doubling down on its U.S. strategy.

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