Taiwan Semiconductor Manufacturing Co. has begun mass production at its second Arizona facility, marking a major step in the company’s U.S. manufacturing push. The new plant is producing advanced chips used in high-performance computing, including processors for Nvidia’s AI and graphics systems.

The expansion comes as Washington keeps tight controls on advanced semiconductor exports, especially technology linked to artificial intelligence and military applications. By bringing more cutting-edge production to the United States, TSMC is helping shift a critical part of the chip supply chain closer to American customers.

Nvidia has relied heavily on TSMC for some of its most advanced products, and the Arizona output is expected to support future demand for AI hardware. The move also reflects broader efforts by chipmakers and policymakers to reduce supply-chain risks after years of global shortages and geopolitical pressure.

TSMC’s Arizona buildout remains one of the most closely watched industrial projects in the U.S. technology sector. Analysts say the company’s success there could influence how quickly domestic chip manufacturing scales up to meet rising demand from AI firms and cloud providers.