Taiwan Semiconductor Manufacturing Co. (TSMC) is simultaneously reshaping the Arizona economy and solidifying its leadership in advanced chipmaking.
A $150 billion investment from the company in the U.S. has garnered praise from state lawmakers, while its latest packaging initiatives highlight the company’s strategic preparation for the next wave of artificial intelligence-driven demand.
A visiting bipartisan delegation of Arizona lawmakers praised Taiwan Semiconductor for putting their state “on the map.”
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Representative Tony Rivero, who chairs the Arizona House International Trade Committee, noted that Taiwan Semiconductor’s first Arizona fabrication plant (fab) began mass production of 4-nanometer chips last year.
Its second fab, for 3-nanometer chips, is nearing completion, and construction on a third fab began in April, the Taipei Times reported on Thursday.
Rivero also said that direct flights between Phoenix and Taipei will soon be launched to facilitate business and cultural exchanges as chip demand accelerates.
He intends to propose legislation to strengthen cooperation in higher education and workforce development and to boost Taiwan’s international participation, which he argued China has unfairly blocked.
Other lawmakers echoed this sentiment, including Representative Kevin Volk, who stated that Taiwan’s exclusion from global organizations like Interpol undermines not only Taiwan but also worldwide security.
The delegation’s visit, which includes meetings with Taiwanese officials and attendance at SEMICON Taiwan, underscores Arizona’s long-term commitment to expanding economic ties with the chipmaking leader.
On the technological front, Taiwan Semiconductor is reinforcing its competitive edge. Speaking at the 3D IC Global Summit in Taipei, Jun He, Vice President of Advanced Packaging Technology and Service, emphasized that building a localized supply chain for advanced packaging equipment is crucial.
He noted that AI customers now upgrade chips nearly every year, compressing a development cycle once measured in two to three years into just one.
To keep pace, Taiwan Semiconductor must scale production “from zero to peak in three quarters, maintain yields above 90%, and expand capacity for high-bandwidth memory critical to AI performance,” the Taipei Times reported.
In response to these challenges, Taiwan Semiconductor launched the 3D IC Advanced Manufacturing Alliance, which includes 37 companies like ASE Technology.
By bringing local and global suppliers into the development process early, the company aims to strengthen its ecosystem and capture growth in a packaging market forecasted to more than double to $79 billion by 2030.
The company’s stock has gained 32% year-to-date, outperforming the NASDAQ Composite Index, which has returned over 13%.
Price Action: TSM stock is trading lower by 0.05% to $260.30 premarket at last check Thursday.
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