On October 17, 2025, Taiwan’s chip giant TSMC’s Chairman and CEO, Wei Zhejia, announced on Thursday (October 16) that in order to meet the strong demand for artificial intelligence (AI) from customers, TSMC plans to accelerate the production of advanced 2-nanometer chips in the United States. This also implies that the company will further expand on the committed $165 billion investment.
Wei Zhejia stated during the financial report conference, “Given the strong demand for AI from customers, we are preparing to upgrade our technology to N2 (2 nanometers) and more advanced processes in Arizona.” TSMC had previously mentioned that its third factory in Arizona would produce 2-nanometer chips before the end of this decade.
Wei Zhejia also mentioned that TSMC is close to acquiring a second large piece of land near its factory in Arizona, providing more flexibility to meet the ongoing strong demand for AI for years to come.
“Our plan will enable TSMC to expand into an independent Gigafab cluster in Arizona to support the needs of our leading customers in the smartphone, AI, and high-performance computing (HPC) applications,” stated Wei Zhejia.
The CEO downplayed the impact of export controls and Beijing’s restrictions on AI chips, expressing full confidence in TSMC’s customers. “Even if the Chinese market is not accessible, I still believe there will be significant growth in AI,” he said.
According to reports from Nikkei News, U.S. chip equipment manufacturer Applied Materials stated that the AI boom and related demand show no signs of slowing down. Another major supplier of TSMC, Europe’s top chip equipment manufacturer ASML, mentioned on Wednesday that despite a slowdown in Chinese business, revenue is expected to be no less than 2025.
Benefiting from the continuous growth in demand from all leading AI chip developers in the U.S., TSMC’s North American revenue continued to rise, with a 76% increase in the third quarter compared to the same period last year’s 71%. In contrast, TSMC’s revenue in China during the same period dropped from 11% last year to 8%.
Arthur Lai, a semiconductor analyst at Macquarie Group in Australia, mentioned that the negative impacts of tariffs or economic weakness have not yet materialized, indicating that TSMC’s short-term performance remains well supported, with external macroeconomic risks under control.
Shortly before Wei Zhejia’s speech on Thursday, U.S. chip manufacturer Intel had just commenced the mass production of its most advanced 18A chip in Arizona.
In March of this year, U.S. President Trump met with Wei Zhejia at the White House and announced that the Taiwanese company plans to invest at least $100 billion in U.S. chip manufacturing plants over the next four years.
During the press conference with Trump, Wei Zhejia mentioned that TSMC would build several new factories in Arizona. “We will produce many AI chips to support the development of artificial intelligence,” said Wei Zhejia.
TSMC stated that the expansion plans include the construction of three new chip manufacturing plants, two advanced packaging facilities, and a large research and development center.