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Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) CEO C.C. Wei reaffirmed the company’s commitment to expanding its U.S. footprint to support the accelerating demand for artificial intelligence-driven chips.
Wei said Taiwan Semiconductor will push ahead with expanding its Arizona fab — a core piece of the chipmaker’s $165 billion U.S. manufacturing investment that aligns with President Donald Trump’s priority of bringing cutting-edge semiconductor production onshore.
The factory began operations this year.
Also Read: Taiwan Semiconductor Hikes Dividend, Approves $15 Billion Spending Plan For New Chip Factories
“Once you start with a semiconductor fab, you cannot stop,” Wei told Bloomberg at an industry event in California on Thursday.
He emphasized that semiconductor plants must continue expanding once they begin operations, driven by strong customer demand and the U.S. government’s push for more domestic chip supply.
Wei said Taiwan Semiconductor is scaling production in Arizona to achieve the size needed to lower costs and effectively serve its customers.
He also noted that AI remains in its early stages, with demand expected to keep accelerating.
Wei’s comments came after he and former Taiwan Semiconductor chairman Mark Liu — now a Micron Technology Inc. (NASDAQ:MU) board member — received the 2025 Robert N. Noyce Award, one of the semiconductor industry’s highest honors.
The $1.4 trillion contract chipmaker’s stock gained 41% year-to-date, as it is a key supplier to the highest market cap company, Nvidia Corp (NASDAQ:NVDA).
Taiwan Semiconductor bagged nearly 147 billion New Taiwanese dollars ($4.71 billion) in government subsidies over the past two years as global powers back its expansion in the U.S., Japan, Europe, and China.
The company said its overseas units are using the funding to buy property, equipment, and facilities and to cover operating costs at new fabs under agreements with local governments.
Taiwan Semiconductor continues to scale advanced manufacturing capacity worldwide, including ramping production in Japan and expanding sites in Europe and China.
TSM Price Action: Taiwan Semiconductor shares were trading lower by 1.00% to $274.73 premarket at last check Friday.
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Photo by Jack Hong via Shutterstock
