Taiwan Semiconductor Manufacturing Co. said it will speed up construction of advanced chip packaging capacity at its Arizona site, marking another step in the company’s push to expand its U.S. footprint. The move comes as Washington tightens export controls aimed at sensitive semiconductor supply chains tied to artificial intelligence and defense.

Advanced packaging has become a critical bottleneck in the chip industry because it helps combine multiple chips into higher-performance systems. By expanding this capability in Arizona, TSMC is signaling that more of the high-value manufacturing process may shift closer to U.S. customers and government priorities.

The plan also reflects growing pressure on global chipmakers to align production with U.S. trade and security policy. Export restrictions have increased the urgency around domestic capacity, especially for technologies considered strategically important by American officials.

Reuters reported the update as part of broader efforts to map how semiconductor companies are adapting to the changing regulatory environment. TSMC’s Arizona expansion could strengthen the U.S. supply chain, though it also underscores the costs and complexity of reshaping a globally integrated industry.