The resounding victory of President-elect Trump in the 2024 US elections has injected a new sense of urgency among Taiwan’s semiconductor supply chain partners, particularly TSMC, to establish new manufacturing facilities within the United States. This shift towards domestic production has been gaining momentum, with TSMC’s upcoming Arizona plant 1 poised to become a pivotal point for further investment in the US semiconductor ecosystem.
According to a recent report from Ctee, industry insiders have highlighted the growing importance of US manufacturing since President Trump took office. The focus on domestic production has led to an increase in demand for semiconductor packaging plants and equipment factories to relocate their operations to the US. TSMC’s Arizona plant is scheduled to begin mass production in early 2025, with both President Biden and President-elect Trump expected to attend its grand opening ceremony in December.
Ctee’s report emphasizes the significant impact of TSMC’s new Arizona fabrication plant, labeling it as a “detonation of the semiconductor supply chain.” This facility is expected to trigger an investment boom, prompting the establishment of new factories across the United States. The report’s source predicts that following wafer foundry, packaging, and testing operations, Taiwanese manufacturers are planning to expand their overseas ventures, with Texas emerging as a key target for investment.
Taiwanese companies such as Wanrun, Hongsu, and Junhua are poised to benefit from this shift, with rumors circulating that other companies will also capitalize on the move into the US market. This expansion will allow industry players to establish a strong foothold in the US, creating advanced packaging production capabilities.
The countdown is on for TSMC’s new 4nm plant in Arizona, with mass production anticipated in the near future. The facility is projected to have a monthly production capacity of 20,000 to 30,000 pieces. Furthermore, TSMC has signed a Memorandum of Understanding (MOU) with Amkor, a prominent packaging and testing company, while ASE, another major player in the sector, announced on November 8 its plans to establish a new facility in Mexico. This new facility will directly target the advanced packaging market for TSMC’s US-made chips, solidifying the company’s commitment to building a robust and comprehensive semiconductor ecosystem within the United States.
