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TSMC has announced significant plans for the United States, one of which is producing its cutting-edge N2 technology in the country. This move will give America a competitive edge in the chip industry.
Ever since the Trump administration took office, TSMC has seen increased interest in the region, partly due to the “tariff threat” looming over the company. Initially reluctant to transfer technology to other nations, Taiwan seems to have changed its stance recently. According to Ctee, TSMC is now preparing for 2nm production lines at an Arizona facility under construction, known as Fab P3. This facility could start operations in 2026, a year after the technology’s introduction in Taiwan.
Establishing chip facilities in America has become a trend among companies, mainly due to the administration’s emphasis on tariff deals with South Korea. For TSMC, despite initial challenges related to cultural and logistical issues, increased investments have made the company more committed to its US ambitions. The firm is showing eagerness to dominate this market by making significant moves in the US chip supply chain.
Since major tech companies need a strong relationship with the current US administration, firms like NVIDIA, Apple, and AMD are ready to shift their supply chains into America through substantial investments, ranging from setting up production to aiding supply chain partners. As these companies currently rely on TSMC’s chips, it is crucial for Taiwan’s giant to establish a robust chip network in the US. By moving 2nm technology to the region, TSMC has chosen its next place of business.
The United States aims to meet a significant portion of its chip demand domestically within a few years, largely due to the current administration’s focus on self-reliance. It will be interesting to see how future US-TSMC relations evolve, but for now, it’s all about America.
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According to the passage, which of the following statements about TSMC's plans in the United States is true?
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