Taiwan Semiconductor Manufacturing Co. said it will accelerate work on its second Arizona factory, a move that comes as Washington increases pressure on advanced chip shipments to China. The expansion underscores how the U.S. is pushing more semiconductor manufacturing onto American soil while tightening control over high-end AI hardware.

The company’s decision follows a broader effort by U.S. officials to restrict access to cutting-edge chips that can be used in artificial intelligence and other sensitive applications. Those measures have put added scrutiny on global suppliers that serve major U.S. tech firms and overseas customers at the same time.

TSMC has become central to that strategy because it manufactures many of the world’s most advanced semiconductors. Building more capacity in Arizona could help the company diversify production beyond Taiwan and align more closely with U.S. industrial policy, even as trade and technology tensions with China continue to rise.

The move also reflects the strategic importance of chipmaking in the competition over AI infrastructure. As governments seek tighter supply-chain control, major manufacturers are being pulled into a reshaping of where the most advanced chips are made and who can buy them.