Taiwan Semiconductor Manufacturing Co. is moving faster on its second Arizona chip plant as demand from U.S. customers continues to climb. The expansion is aimed at increasing domestic output for advanced semiconductors used by major American technology firms, including Nvidia.

The push comes as Washington keeps tightening export controls on semiconductor sales and related technology to China. U.S. officials have sought to limit Beijing’s access to high-end chips and manufacturing tools, turning chip supply chains into a strategic battleground.

For TSMC, the Arizona buildout is part of a broader effort to diversify production beyond Taiwan and strengthen its role in the U.S. market. The project also reflects pressure from American buyers that want more chip capacity closer to home after years of supply-chain disruptions.

The company’s expansion underscores how the global chip industry is being reshaped by industrial policy, national security concerns, and intense competition for advanced computing hardware.