According to foreign media reports, TSMC’s presence in the United States market is rapidly intensifying, with its Arizona fab becoming a focal point for global tech giants. Driven by supply chain demand, TSMC is actively expanding production, having already invested over $100 billion in the US, covering advanced process nodes and packaging technologies. Meanwhile, although Intel is aggressively pushing its 18A process in its domestic foundry business, its overall progress remains in a wait-and-see stage as it’s still in the early stages of mass production and has yet to enter full-scale volume production.
TSMC’s Arizona Operations in Full Swing #
TSMC’s wafer fab in Arizona is now fully operational. The first phase of the factory, utilizing the 4nm process, achieved mass production in early 2025, with a monthly capacity of 30,000 wafers. Its clientele includes industry leaders such as Apple, NVIDIA, AMD, and Qualcomm. Reportedly, the factory’s yield rates are already nearing those of its Taiwan counterparts. Apple’s A16 chips, NVIDIA’s Hopper series GPUs, and some of AMD’s server CPUs have begun production there. The second factory is expected to begin production of 3nm and 2nm processes in 2028, and the third factory is planned for 2030, focusing on 2nm and more advanced technologies, with a total monthly capacity projected to reach 90,000 wafers. Additionally, TSMC plans to build two advanced packaging factories and a research and development center in Arizona, further enhancing the local supply chain.
Factors Driving TSMC’s US Expansion #
TSMC’s business expansion in the US market is propelled by several positive factors. Firstly, in the context of global supply chain adjustments, companies are increasingly prioritizing the development of localized production capabilities to enhance supply chain stability. As a crucial global tech market, the US attracts numerous multinational tech companies to increase their local investment. Secondly, the trend of global industrial layout optimization is prompting tech companies to adjust their production distribution to better respond to market changes. The construction of TSMC’s production base in the US not only helps secure customer demand but also benefits from local industrial policy support, receiving substantial subsidies and low-interest loans, effectively reducing operating costs. It is noteworthy that emerging technologies like artificial intelligence are driving the rapid development of the global semiconductor industry. According to industry analysis, demand for AI chips is expected to maintain high growth over the next five years, and TSMC’s strategic layout of production bases in the US helps it seize opportunities in emerging technology development, reflecting the positive outcomes of global industrial division of labor and collaboration.
Advanced Process Node Transfer and Intel’s Challenges #
On the technology front, TSMC is accelerating the transfer of advanced process nodes to the US. The 2nm process is expected to begin mass production in Taiwan in the second half of 2025, with plans to gradually allocate 30% of its capacity to the US. This process utilizes GAA (Gate-All-Around) nanosheet technology, offering a 15% performance increase, 30% power consumption reduction, and 15% higher transistor density compared to 3nm. Furthermore, TSMC also plans to introduce the A16 (1.6nm) process by 2030. However, for now, the US factories primarily focus on optimizing and localizing already mass-produced processes, with large-scale transfer of core technology development yet to occur.
In contrast, Intel’s foundry business progress has been more cautious. Intel is advancing its 18A process, with mass production expected in the second half of 2025. While media generally reports strong interest from several major companies in 18A, it’s also a fact that the delivery timeline for the 18A process has been delayed by six months, indicating ongoing challenges in yield rates and production ramp-up. Intel’s Fab 52 factory in Arizona is accelerating equipment installation, but the market remains reserved about whether it can meet its commitments on time. It’s worth noting that Intel’s foundry business (IFS) currently accounts for only 6% of the global wafer foundry market share, significantly lower than TSMC’s 62%. Nevertheless, with its domestic advantage and government support, Intel is still regarded as a crucial force in the revitalization of US chip manufacturing.
Operational Costs and Market Dynamics #
Currently, Arizona has attracted several suppliers to establish local subsidiaries, with supply chains for raw materials such as silicon wafers, electronic specialty gases, and photoresists gradually taking shape. However, high operating costs remain a challenge. TSMC founder Morris Chang once pointed out that the manufacturing costs of US factories are over 50% higher than in Taiwan, due to factors including labor costs, supply chain efficiency, and cultural differences. For example, a Taiwanese factory can resume production within an hour after a nighttime malfunction, whereas a US factory might require more time.
From a market dynamics perspective, TSMC’s US factories are changing the wafer foundry landscape. AMD recently abandoned its 4nm collaboration with Samsung, instead awarding its EPYC server CPU orders to TSMC’s Arizona factory. In contrast, Samsung’s 3nm process yield is only around 60%, limiting its customer expansion and further widening the gap with TSMC. TSMC’s revenue grew by nearly 20% in 2024, with high-performance computing chips (including AI accelerators) accounting for 51% of its revenue, becoming the primary growth driver.
Future Outlook #
Leveraging advanced process nodes, strong market demand, and policy support, TSMC is consolidating its leadership in the global chip foundry market. Intel, on the other hand, needs to accelerate the maturation of its 18A process to catch up in the domestic market. In the future, with the mass production of 2nm and more advanced processes, the competition between TSMC and Intel will further intensify, and the global semiconductor industry landscape may undergo a new round of reshuffling.