Taiwan Semiconductor Manufacturing Co. will add another advanced chip fabrication plant in Arizona, deepening its US manufacturing footprint as Washington seeks to reduce exposure to supply-chain shocks and geopolitical risk.

The new facility is part of a broader effort to bring more leading-edge semiconductor production onto American soil. US officials have repeatedly pushed for stronger domestic chip capacity after pandemic-era shortages exposed how dependent key industries remain on overseas production.

TSMC’s expansion also reflects the strategic importance of semiconductors in the global competition between the US and China. Chips power everything from smartphones and data centers to artificial intelligence systems, making fabrication capacity a central issue for both economic security and national policy.

While the project is expected to bolster resilience in the chip supply chain, it also highlights the scale of investment required to move advanced manufacturing. Building and equipping fabs takes years, massive capital spending, and close coordination with suppliers, customers, and regulators.