Taiwan Semiconductor Manufacturing Co. is moving faster on its Arizona buildout, advancing work on its second and third fabrication plants as Washington sharpens export controls on advanced chipmaking tools sent to China, according to sources familiar with the matter.

The expansion would deepen TSMC’s U.S. manufacturing footprint at a moment when policy in Washington remains focused on limiting China’s access to cutting-edge semiconductor technology. The company has become a central player in the global push to diversify chip supply chains away from East Asia.

Arizona has emerged as a strategic hub for the semiconductor industry, with state and federal officials courting major investment to reduce dependence on overseas production. TSMC’s planned facilities are expected to support advanced chip output for customers tied to artificial intelligence, cloud computing, and consumer electronics.

The move also underscores how trade restrictions are reshaping global technology investment. As the U.S. tightens pressure on China’s chip sector, leading manufacturers are recalibrating where they build and how they serve major markets.