On January 15, Focus Taiwan reported on discussions surrounding TSMC’s potential plan to expand its operations in the United States, quoting analysis from Dr. Jeremy Chih-Cheng Chang (張智程）, CEO of the Research Institute for Democracy, Society and Emerging Technology (DSET).
Amid ongoing U.S.-Taiwan tariff negotiations, The New York Times recently revealed that TSMC has committed to building at least five new semiconductor fabs in Arizona, effectively doubling the state’s manufacturing capacity. The report has sparked public debate over whether Taiwan’s strategic significance could decline. TSMC, however, did not provide further comment on the report during its January 15 Earnings Conference.
Focus Taiwan interviewed Chang on the same day, inquiring whether Taiwan’s so-called “Silicon Shield” status could be affected by TSMC’s overseas expansion.
Zhang stated, “At this stage, advanced manufacturing in the U.S. remains largely driven by security and political considerations.” He cited industry analysis noting that establishing advanced process fabs in the U.S. currently lacks “economic rationality,” mainly because the U.S. has yet to develop a mature semiconductor cluster, which could make overall manufacturing costs more than double those in Taiwan.
Zhang further emphasized that Taiwan’s core role in the global semiconductor industry is unlikely to be replaced by overseas capacity, as foreign fabs do not yet offer sufficient economic competitiveness. The true determining factor will be whether the U.S. can eventually develop a self-sufficient, fully integrated semiconductor ecosystem comparable to Taiwan’s technology park model—including supply chain partners, skilled engineers, and R&D capabilities. Currently, the U.S. has not reached this threshold.
He also noted that TSMC’s primary focus remains meeting customer demand, and its decision to expand capacity in the U.S. should be viewed within the context of its overall operational priorities.
TSMC projected its 2026 capital expenditure at between US$52 billion and US$56 billion, up 27-37 percent from US$40.9 billion in 2025. About 60-80 percent of the spending will go toward advanced process development, TSMC Chief Financial Officer Wendell Huang (黃仁昭) said.
