Taiwan-based TSMC, a global leader in chip production, is accelerating its advanced chip manufacturing processes at its new facilities in the US. The company is moving 1.6nm (A16) and 2nm chip production to its US facilities a year ahead of schedule. This move will put the US just one year behind Taiwan in advanced chip production.
Trump’s pressure has paid off
TSMC’s new production facilities in Arizona play a critical role in implementing advanced processes. According to Taiwan Economic Daily, the Fab 3 facility in Arizona will bring its 2nm technology and 1.6nm class A16 process to the US by 2027. This date has been brought forward by one year from the original schedule.
Currently, TSMC is continuing mass production of 4nm chips at its Arizona facilities and is building 3nm production lines. This 3nm production is also targeted to begin by the end of the year.
However, the most striking plan is for 2nm and A16 (1.6nm) production to begin in the US by 2027 with Fab 4. This means the US will be only one year behind Taiwan in terms of the company’s overall schedule. Based on the company’s overall schedule, 2nm production will begin next quarter, with the A16 to be introduced in the second half of 2026.
This acceleration decision is directly related to the US administration’s goal of strengthening its chip supply chain in response to geopolitical tensions between China and Taiwan. The US is requiring TSMC to produce half of its domestic production capacity. The effort to establish a strong and independent chip supply chain in the US, initiated during the Trump administration, appears to be an effective method of implementation.
New government policies mean that TSMC is forced to increase its US investments. The company is expected to meet at least 30% of US chip demand by 2026 and maintain production at six factories in Arizona. These steps demonstrate that the United States has made significant progress in solidifying its strategic independence in high-tech chip production.
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