Taiwan Semiconductor Manufacturing Co. (TSMC) says it will move faster on its second chip plant in Arizona as demand from Nvidia rises and Washington tightens restrictions on advanced AI semiconductors.

The company’s expanded U.S. production push comes as export controls limit shipments of high-end chips to certain overseas buyers. That has increased pressure on leading manufacturers to secure more capacity inside the United States.

TSMC has already invested heavily in Arizona as part of a broader effort to diversify its manufacturing footprint beyond Taiwan. The faster buildout could make the site a more important part of the supply chain for advanced processors used in AI systems, data centers, and other high-performance computing applications.

For Nvidia, one of TSMC’s biggest customers, increased U.S. production could help support supply as demand for cutting-edge chips remains strong. The move also highlights how semiconductor policy, national security concerns, and industry competition are reshaping where the world’s most advanced chips are made.