What would happen if the supply of the world’s most advanced chips was suddenly cut off? Supply chains would be devastated, prices of goods would surge, and innovation would come to a screeching halt. This isn’t science fiction; it’s a potential reality with Taiwan Semiconductor Manufacturing Company at its center. Based in Taiwan, TSMC currently manufactures 92% of the world’s most advanced chips, powering devices from smartphones to automobiles, from health care devices to military equipment. Geopolitically, it’s not an exaggeration to say that TSMC is the single most important piece on the global chessboard. The question then becomes: What does this mean for America?
Believe it or not, America was once the leading nation in semiconductor manufacturing and technology up until the 1980s. Then, poor leadership led to a significant decline that resulted in, among other things, manufacturing being moved overseas. This hollowed out America’s manufacturing capability. In short, we lost control of the semiconductor manufacturing life cycle to foreign nations. As a result, America has become dangerously dependent on others for what is undoubtedly one of the most critical technologies for any civilization. After 40 years, America has made a move to regain control of its own future.
In May of 2020, TSMC announced its intention to build and operate an advanced semiconductor fabrication facility in America, specifically in Phoenix, Arizona. As of early 2025, TSMC Arizona has begun volume production of its 4-nanometer chip technology in the first constructed fabrication building. Construction of the second fabrication building is well under way. Ultimately, six fabrication buildings will stand in the dry landscape of northern Phoenix. This more than $65 billion project is a massive win for America.
To understand the significance better, let’s review the benefits related to the economy, technology, and national security. Starting with the economy, TSMC’s investment is projected to generate thousands of direct manufacturing jobs, with estimates ranging from around 6,000 to 7,000. Additionally, it is expected to create tens of thousands more indirect jobs through construction and related industries. Moreover, establishing a major semiconductor manufacturing base in America can catalyze the development of a local supply chain, potentially enticing other technology companies and suppliers to establish operations in the vicinity, thereby fostering a thriving tech manufacturing ecosystem.
The technological and innovation benefits include regaining technological leadership, boosting research and development, and diversifying manufacturing. By manufacturing the most cutting-edge chips in America, the country can reclaim some of its lost ground in semiconductor technology, thereby elevating its standing in global tech innovation. With such close proximity between TSMC and other high-tech companies and research institutions, we can expect increased collaboration, which will likely boost innovation in American semiconductor technology. Perhaps most importantly, with TSMC building advanced chips domestically, supply chain disruptions that start elsewhere in the world can be mitigated or even unfelt.
Last but certainly not least is national security. By reducing reliance on overseas manufacturing for critical technology components, national security is enhanced by mitigating vulnerabilities stemming from Taiwan’s geopolitical situation. If you didn’t know, China and Taiwan have ongoing political disputes that, if escalated, would be devastating to the entire world, including China. Therefore, domestic production of advanced chips fortifies military technology capabilities, ensures that sensitive technologies are more securely managed, and affords America the luxury of not being so “hands-on” with the geopolitical goings-on between foreign nations.
TSMC’s decision to invest heavily in semiconductor manufacturing in America isn’t just about business; it’s a strategic move with profound implications for economic prosperity, technological sovereignty, and national security. The establishment of these facilities in Arizona marks a significant step toward rekindling America’s once-dominant role in the tech industry. The economic benefits are clear, with thousands of jobs and the potential for a vibrant tech ecosystem. Technologically, this move could catapult America back into the forefront of innovation, particularly in semiconductor technology. From a security perspective, it reduces the risks associated with geopolitical tensions, ensuring that the backbone of modern technology isn’t held hostage by international disputes. As we move forward, the TSMC project in Arizona not only promises to reshape America’s manufacturing landscape but also reasserts America’s commitment to being at the cutting edge of global technology. The future, powered by chips made in America, looks not only brighter but also more secure.
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