U.S. inches closer to Taiwan in chip race as TSMC fast-tracks Arizona fabs

America’s bid to catch up with Taiwan in advanced chipmaking is gaining traction faster than expected. Taiwan Semiconductor Manufacturing Company (TSMC), the global leader in cutting-edge semiconductors, is dramatically accelerating construction of two new plants in Arizona—potentially narrowing the technology gap between its U.S. and Taiwan operations by years.

Once envisioned as a slow but steady expansion, the Phoenix-based projects are now moving at a much faster pace. The two upcoming fabrication facilities—Fab 22 and Fab 23—were initially expected to go online deep into the next decade, with one aimed at 3-nanometer production and the other built for the highly coveted 2-nanometer chips. Now, TSMC says they’ll be operational “several quarters” earlier than planned.

The motivation? A mix of surging demand from U.S. tech giants, rising geopolitical tensions in Asia, and a strategic push to decentralize global chip supply chains. Apple, which relies almost exclusively on TSMC for its A- and M-series chips, stands to benefit immensely—though its most advanced silicon will still be produced in Taiwan for the time being.

TSMC’s Arizona expansion is backed by a combination of private and public investment.

The company’s $100 billion global spending plan includes a large slice for U.S. manufacturing, on top of the $12 billion already committed to the original Fab 21 facility. Washington is also playing a key role, delivering $6.6 billion in funding through the CHIPS and Science Act to help bolster America’s high-tech infrastructure.

While the fabs will bring production of next-generation chips to U.S. soil, there’s a broader ambition at play: reshaping the semiconductor map. TSMC CEO C.C. Wei recently noted that up to 30% of the company’s 2nm and beyond production could be based in Arizona in the near future—a dramatic shift that would’ve seemed unlikely just a few years ago.

Still, the U.S. must overcome critical challenges to fully compete with Taiwan’s chipmaking powerhouse status. Skilled labor shortages, supply chain gaps, and the steep learning curve of running advanced fabs remain hurdles. Taiwan’s decades-long head start won’t vanish overnight.

Yet if timelines hold, the U.S. may close what was once a five-year technology gap to just three. For the world’s biggest chip consumers—and the political leaders advocating for technological independence—that’s no small leap.