Taiwan Semiconductor Manufacturing Co. said it will expand advanced chip production at its Arizona facility, adding new lines for 2-nanometer processors. The move comes as Washington keeps pressure on exports of cutting-edge semiconductors to China.

The company’s U.S. expansion reflects both commercial demand and the geopolitical push to build more advanced manufacturing capacity outside Taiwan. Chips at this scale are central to artificial intelligence systems, high-end computing, and next-generation consumer devices.

U.S. export restrictions have increasingly limited the transfer of leading-edge semiconductor technology to China, forcing major chipmakers and their customers to adjust supply chains. TSMC’s Arizona investment is one of the clearest signs that the race for advanced chip production is shifting further onto American soil.

The project also highlights the broader strategy in Washington to reduce reliance on overseas production for critical technologies. For Arizona, it means more high-skill manufacturing activity and a larger role in the global semiconductor industry.