Taiwan Semiconductor Manufacturing Co. will accelerate its Arizona expansion as the United States prepares stricter limits on advanced AI chip shipments linked to overseas foundries, according to sources familiar with the matter.

The move would deepen TSMC’s U.S. manufacturing footprint at a time when Washington is sharpening its effort to restrict China’s access to cutting-edge semiconductors. The planned rules are expected to target chips produced outside the United States but connected to American technology and supply chains.

TSMC’s Arizona project has become a central part of the push to rebuild domestic chip capacity and reduce reliance on Asia-based production. The company has already committed billions of dollars to the site, which is intended to make advanced chips for major customers including U.S. tech firms.

The reported expansion also underscores how export controls are reshaping the global semiconductor industry. As governments tighten oversight, chipmakers are being pushed to balance access to China’s market with rising pressure from the United States to localize high-end production.