US to hold over 20% of advanced chip capacity by 2030
The US is projected to hold 22% of global advanced semiconductor manufacturing capacity by 2030, driven by TSMC’s expanded investment in US production, according to TrendForce. TSMC has increased its total investment in its US operations to $165 billion, with three newly planned fabs set to begin mass production after 2030.
TSMC originally announced its Arizona fab in 2020 as part of a broader six-fab expansion strategy, aiming to mitigate geopolitical risk. Rising trade tensions and tariffs have since accelerated the company’s US expansion plans.
TrendForce data from 2021 indicated that Taiwan controlled 71% of global advanced node capacity and 53% of mature node capacity. By 2030, Taiwan’s share of advanced semiconductor production is expected to decline to 58%, while its mature process capacity will fall to 30%, as the US and China ramp up their domestic production.
TSMC’s US expansion is strategic, given that US customers represent the largest share of its advanced node demand. The company is also building two advanced packaging plants and a R&D centre for HPC applications. Arizona is poised to become TSMC’s key overseas technology hub.
While diversifying production reduces supply chain risks, it may also increase costs for US semiconductor customers, potentially leading to higher component and end-product prices.
TSMC’s Arizona Phase 1 fab recently began mass production, while Phases 2 and 3 remain under construction, with production expected between 2026 and 2028. The timeline for the three newly announced fabs remains uncertain, with limited short-term industry impact. However, long-term cost implications and supply chain shifts will be key factors to monitor, says TrendForce.
TSMC's US expansion targets AI and chip innovation
On March 3, 2025, US President Donald Trump, alongside TSMC CEO C.C. Wei, announced the largest foreign direct investment in US history, as the Taiwanese semiconductor manufacturer committed at least $100 billion to expand its US operations.
During the announcement, President Trump stated that the "new investment will go into building five cutting-edge fabrication facilities."
In a press release, TSMC stated that it expects this investment to generate hundreds of billions in semiconductor value, particularly for AI and emerging technologies. The initiative is also projected to create 40,000 construction jobs over the next four years and tens of thousands of high-paying, high-tech jobs in chip manufacturing and research.
